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To amend sections 102.02, 102.03, 102.06, 117.10, | 1 |
145.04, 145.05, 145.051, 145.06, 145.09, 145.27, | 2 |
171.01, 171.02, 171.03, 171.04, 742.03, 742.04, | 3 |
742.05, 742.10, 742.38, 742.41, 1707.01, 1707.03, | 4 |
1707.17, 1707.19, 1707.20, 1707.22, 1707.23, | 5 |
1707.25, 1707.261, 1707.39, 1707.431, 1707.44, | 6 |
1707.46, 3307.03, 3307.05, 3307.06, 3307.07, | 7 |
3307.11, 3307.20, 3309.03, 3309.05, 3309.06, | 8 |
3309.07, 3309.14, 3309.22, 5505.04, and 5505.07; | 9 |
to amend, for the purpose of adopting new section | 10 |
numbers as indicated in parentheses, sections | 11 |
145.051 (145.052) and 3309.061 (3309.071); to | 12 |
enact new sections 145.051 and 3309.061; and | 13 |
sections 109.98, 111.30, 145.041, 145.053, | 14 |
145.054, 145.055, 145.057, 145.092, 145.093, | 15 |
145.094, 145.114, 145.99, 171.06, 171.50, 742.031, | 16 |
742.042, 742.043, 742.044, 742.046, 742.102, | 17 |
742.103, 742.104, 742.114, 742.99, 1707.162, | 18 |
1707.163, 3307.041, 3307.042, 3307.043, 3307.051, | 19 |
3307.061, 3307.072, 3307.073, 3307.074, 3307.152, | 20 |
3307.99, 3309.041, 3309.042, 3309.043, 3309.051, | 21 |
3309.072, 3309.073, 3309.074, 3309.157, 3309.99, | 22 |
5505.041, 5505.042, 5505.043, 5505.044, 5505.045, | 23 |
5505.046, 5505.048, 5505.062, 5505.063, 5505.064, | 24 |
5505.065, 5505.066, 5505.122, and 5505.99 of the | 25 |
Revised Code regarding governance of Ohio's five | 26 |
public retirement systems. | 27 |
Section 1. That sections 102.02, 102.03, 102.06, 117.10, | 28 |
145.04, 145.05, 145.051, 145.06, 145.09, 145.27, 171.01, 171.02, | 29 |
171.03, 171.04, 742.03, 742.04, 742.05, 742.10, 742.38, 742.41, | 30 |
1707.01, 1707.03, 1707.17, 1707.19, 1707.20, 1707.22, 1707.23, | 31 |
1707.25, 1707.261, 1707.39, 1707.431, 1707.44, 1707.46, 3307.03, | 32 |
3307.05, 3307.06, 3307.07, 3307.11, 3307.20, 3309.03, 3309.05, | 33 |
3309.06, 3309.07, 3309.14, 3309.22, 5505.04, and 5505.07 be | 34 |
amended; sections 145.051 (145.052) and 3309.061 (3309.071) be | 35 |
amended for the purpose of adopting new section numbers as | 36 |
indicated in parentheses; and new sections 145.051 and 3309.061 | 37 |
and sections 109.98, 111.30, 145.041, 145.053, 145.054, 145.055, | 38 |
145.057, 145.092, 145.093, 145.094, 145.114, 145.99, 171.06, | 39 |
171.50, 742.031, 742.042, 742.043, 742.044, 742.046, 742.102, | 40 |
742.103, 742.104, 742.114, 742.99, 1707.162, 1707.163, 3307.041, | 41 |
3307.042, 3307.043, 3307.051, 3307.061, 3307.072, 3307.073, | 42 |
3307.074, 3307.152, 3307.99, 3309.041, 3309.042, 3309.043, | 43 |
3309.051, 3309.072, 3309.073, 3309.074, 3309.157, 3309.99, | 44 |
5505.041, 5505.042, 5505.043, 5505.044, 5505.045, 5505.046, | 45 |
5505.048, 5505.062, 5505.063, 5505.064, 5505.065, 5505.066, | 46 |
5505.122, and 5505.99 of the Revised Code be enacted to read as | 47 |
follows: | 48 |
Sec. 102.02. (A) Except as otherwise provided in division | 49 |
(H) of this section, all of the following shall file with the | 50 |
appropriate ethics commission the disclosure statement described | 51 |
in this division on a form prescribed by the appropriate | 52 |
commission: every person who is elected to or is a candidate for a | 53 |
state, county, or city office, or the office of member of the | 54 |
United States congress, and every person who is appointed to fill | 55 |
a vacancy for an unexpired term in such an elective office; all | 56 |
members of the state board of education; the director, assistant | 57 |
directors, deputy directors, division chiefs, or persons of | 58 |
equivalent rank of any administrative department of the state; the | 59 |
president or other chief administrative officer of every state | 60 |
institution of higher education as defined in section 3345.011 of | 61 |
the Revised Code; the chief executive officer and the members of | 62 |
the board of each state retirement system; each employee of a | 63 |
state retirement board who is a state retirement system investment | 64 |
officer licensed pursuant to section 1707.163 of the Revised Code; | 65 |
the members of the Ohio retirement study council appointed | 66 |
pursuant to division (C) of section 171.01 of the Revised Code; | 67 |
employees of the Ohio retirement study council, other than | 68 |
employees who perform purely administrative or clerical functions; | 69 |
all members of the board of commissioners on grievances and | 70 |
discipline of the supreme court and the ethics commission created | 71 |
under section 102.05 of the Revised Code; every business manager, | 72 |
treasurer, or superintendent of a city, local, exempted village, | 73 |
joint vocational, or cooperative education school district or an | 74 |
educational service center; every person who is elected to or is a | 75 |
candidate for the office of member of a board of education of a | 76 |
city, local, exempted village, joint vocational, or cooperative | 77 |
education school district or of a governing board of an | 78 |
educational service center that has a total student count of | 79 |
twelve thousand or more as most recently determined by the | 80 |
department of education pursuant to section 3317.03 of the Revised | 81 |
Code; every person who is appointed to the board of education of a | 82 |
municipal school district pursuant to division (B) or (F) of | 83 |
section 3311.71 of the Revised Code; all members of the board of | 84 |
directors of a sanitary district established under Chapter 6115. | 85 |
of the Revised Code and organized wholly for the purpose of | 86 |
providing a water supply for domestic, municipal, and public use | 87 |
that includes two municipal corporations in two counties; every | 88 |
public official or employee who is paid a salary or wage in | 89 |
accordance with schedule C of section 124.15 or schedule E-2 of | 90 |
section 124.152 of the Revised Code; members of the board of | 91 |
trustees and the executive director of the tobacco use prevention | 92 |
and control foundation; members of the board of trustees and the | 93 |
executive director of the southern Ohio agricultural and community | 94 |
development foundation; and every other public official or | 95 |
employee who is designated by the appropriate ethics commission | 96 |
pursuant to
division (B) of this
section | 97 |
98 | |
99 |
The disclosure statement shall include all of the following: | 100 |
(1) The name of the person filing the statement and each | 101 |
member of the person's immediate family and all names under which | 102 |
the person or members of the person's immediate family do | 103 |
business; | 104 |
(2)(a) Subject to divisions (A)(2)(b) and (c) of this section | 105 |
and except as otherwise provided in section 102.022 of the Revised | 106 |
Code, identification of every source of income, other than income | 107 |
from a legislative agent identified in division (A)(2)(b) of this | 108 |
section, received during the preceding calendar year, in the | 109 |
person's own name or by any other person for the person's use or | 110 |
benefit, by the person filing the statement, and a brief | 111 |
description of the nature of the services for which the income was | 112 |
received. If the person filing the statement is a member of the | 113 |
general assembly, the statement shall identify the amount of every | 114 |
source of income received in accordance with the following ranges | 115 |
of amounts: zero or more, but less than one thousand dollars; one | 116 |
thousand dollars or more, but less than ten thousand dollars; ten | 117 |
thousand dollars or more, but less than twenty-five thousand | 118 |
dollars; twenty-five thousand dollars or more, but less than fifty | 119 |
thousand dollars; fifty thousand dollars or more, but less than | 120 |
one hundred thousand dollars; and one hundred thousand dollars or | 121 |
more. Division (A)(2)(a) of this section shall not be construed to | 122 |
require a person filing the statement who derives income from a | 123 |
business or profession to disclose the individual items of income | 124 |
that constitute the gross income of that business or profession, | 125 |
except for those individual items of income that are attributable | 126 |
to the person's or, if the income is shared with the person, the | 127 |
partner's, solicitation of services or goods or performance, | 128 |
arrangement, or facilitation of services or provision of goods on | 129 |
behalf of the business or profession of clients, including | 130 |
corporate clients, who are legislative agents as defined in | 131 |
section 101.70 of the Revised Code. A person who files the | 132 |
statement under this section shall disclose the identity of and | 133 |
the amount of income received from a person who the public | 134 |
official or employee knows or has reason to know is doing or | 135 |
seeking to do business of any kind with the public official's or | 136 |
employee's agency. | 137 |
(b) If the person filing the statement is a member of the | 138 |
general assembly, the statement shall identify every source of | 139 |
income and the amount of that income that was received from a | 140 |
legislative agent, as defined in section 101.70 of the Revised | 141 |
Code, during the preceding calendar year, in the person's own name | 142 |
or by any other person for the person's use or benefit, by the | 143 |
person filing the statement, and a brief description of the nature | 144 |
of the services for which the income was received. Division | 145 |
(A)(2)(b) of this section requires the disclosure of clients of | 146 |
attorneys or persons licensed under section 4732.12 of the Revised | 147 |
Code, or patients of persons certified under section 4731.14 of | 148 |
the Revised Code, if those clients or patients are legislative | 149 |
agents. Division (A)(2)(b) of this section requires a person | 150 |
filing the statement who derives income from a business or | 151 |
profession to disclose those individual items of income that | 152 |
constitute the gross income of that business or profession that | 153 |
are received from legislative agents. | 154 |
(c) Except as otherwise provided in division (A)(2)(c) of | 155 |
this section, division (A)(2)(a) of this section applies to | 156 |
attorneys, physicians, and other persons who engage in the | 157 |
practice of a profession and who, pursuant to a section of the | 158 |
Revised Code, the common law of this state, a code of ethics | 159 |
applicable to the profession, or otherwise, generally are required | 160 |
not to reveal, disclose, or use confidences of clients, patients, | 161 |
or other recipients of professional services except under | 162 |
specified circumstances or generally are required to maintain | 163 |
those types of confidences as privileged communications except | 164 |
under specified circumstances. Division (A)(2)(a) of this section | 165 |
does not require an attorney, physician, or other professional | 166 |
subject to a confidentiality requirement as described in division | 167 |
(A)(2)(c) of this section to disclose the name, other identity, or | 168 |
address of a client, patient, or other recipient of professional | 169 |
services if the disclosure would threaten the client, patient, or | 170 |
other recipient of professional services, would reveal details of | 171 |
the subject matter for which legal, medical, or professional | 172 |
advice or other services were sought, or would reveal an otherwise | 173 |
privileged communication involving the client, patient, or other | 174 |
recipient of professional services. Division (A)(2)(a) of this | 175 |
section does not require an attorney, physician, or other | 176 |
professional subject to a confidentiality requirement as described | 177 |
in division (A)(2)(c) of this section to disclose in the brief | 178 |
description of the nature of services required by division | 179 |
(A)(2)(a) of this section any information pertaining to specific | 180 |
professional services rendered for a client, patient, or other | 181 |
recipient of professional services that would reveal details of | 182 |
the subject matter for which legal, medical, or professional | 183 |
advice was sought or would reveal an otherwise privileged | 184 |
communication involving the client, patient, or other recipient of | 185 |
professional services. | 186 |
(3) The name of every corporation on file with the secretary | 187 |
of state that is incorporated in this state or holds a certificate | 188 |
of compliance authorizing it to do business in this state, trust, | 189 |
business trust, partnership, or association that transacts | 190 |
business in this state in which the person filing the statement or | 191 |
any other person for the person's use and benefit had during the | 192 |
preceding calendar year an investment of over one thousand dollars | 193 |
at fair market value as of the thirty-first day of December of the | 194 |
preceding calendar year, or the date of disposition, whichever is | 195 |
earlier, or in which the person holds any office or has a | 196 |
fiduciary relationship, and a description of the nature of the | 197 |
investment, office, or relationship. Division (A)(3) of this | 198 |
section does not require disclosure of the name of any bank, | 199 |
savings and loan association, credit union, or building and loan | 200 |
association with which the person filing the statement has a | 201 |
deposit or a withdrawable share account. | 202 |
(4) All fee simple and leasehold interests to which the | 203 |
person filing the statement holds legal title to or a beneficial | 204 |
interest in real property located within the state, excluding the | 205 |
person's residence and property used primarily for personal | 206 |
recreation; | 207 |
(5) The names of all persons residing or transacting business | 208 |
in the state to whom the person filing the statement owes, in the | 209 |
person's own name or in the name of any other person, more than | 210 |
one thousand dollars. Division (A)(5) of this section shall not be | 211 |
construed to require the disclosure of debts owed by the person | 212 |
resulting from the ordinary conduct of a business or profession or | 213 |
debts on the person's residence or real property used primarily | 214 |
for personal recreation, except that the superintendent of | 215 |
financial institutions shall disclose the names of all | 216 |
state-chartered savings and loan associations and of all service | 217 |
corporations subject to regulation under division (E)(2) of | 218 |
section 1151.34 of the Revised Code to whom the superintendent in | 219 |
the superintendent's own name or in the name of any other person | 220 |
owes any money, and that the superintendent and any deputy | 221 |
superintendent of banks shall disclose the names of all | 222 |
state-chartered banks and all bank subsidiary corporations subject | 223 |
to regulation under section 1109.44 of the Revised Code to whom | 224 |
the superintendent or deputy superintendent owes any money. | 225 |
(6) The names of all persons residing or transacting business | 226 |
in the state, other than a depository excluded under division | 227 |
(A)(3) of this section, who owe more than one thousand dollars to | 228 |
the person filing the statement, either in the person's own name | 229 |
or to any person for the person's use or benefit. Division (A)(6) | 230 |
of this section shall not be construed to require the disclosure | 231 |
of clients of attorneys or persons licensed under section 4732.12 | 232 |
or 4732.15 of the Revised Code, or patients of persons certified | 233 |
under section 4731.14 of the Revised Code, nor the disclosure of | 234 |
debts owed to the person resulting from the ordinary conduct of a | 235 |
business or profession. | 236 |
(7) Except as otherwise provided in section 102.022 of the | 237 |
Revised Code, the source of each gift of over seventy-five | 238 |
dollars, or of each gift of over twenty-five dollars received by a | 239 |
member of the general assembly from a legislative agent, received | 240 |
by the person in the person's own name or by any other person for | 241 |
the person's use or benefit during the preceding calendar year, | 242 |
except gifts received by will or by virtue of section 2105.06 of | 243 |
the Revised Code, or received from spouses, parents, grandparents, | 244 |
children, grandchildren, siblings, nephews, nieces, uncles, aunts, | 245 |
brothers-in-law, sisters-in-law, sons-in-law, daughters-in-law, | 246 |
fathers-in-law, mothers-in-law, or any person to whom the person | 247 |
filing the statement stands in loco parentis, or received by way | 248 |
of distribution from any inter vivos or testamentary trust | 249 |
established by a spouse or by an ancestor; | 250 |
(8) Except as otherwise provided in section 102.022 of the | 251 |
Revised Code, identification of the source and amount of every | 252 |
payment of expenses incurred for travel to destinations inside or | 253 |
outside this state that is received by the person in the person's | 254 |
own name or by any other person for the person's use or benefit | 255 |
and that is incurred in connection with the person's official | 256 |
duties, except for expenses for travel to meetings or conventions | 257 |
of a national or state organization to which any state agency, | 258 |
including, but not limited to, any legislative agency or state | 259 |
institution of higher education as defined in section 3345.011 of | 260 |
the Revised Code, pays membership dues, or any political | 261 |
subdivision or any office or agency of a political subdivision | 262 |
pays membership dues; | 263 |
(9) Except as otherwise provided in section 102.022 of the | 264 |
Revised Code, identification of the source of payment of expenses | 265 |
for meals and other food and beverages, other than for meals and | 266 |
other food and beverages provided at a meeting at which the person | 267 |
participated in a panel, seminar, or speaking engagement or at a | 268 |
meeting or convention of a national or state organization to which | 269 |
any state agency, including, but not limited to, any legislative | 270 |
agency or state institution of higher education as defined in | 271 |
section 3345.011 of the Revised Code, pays membership dues, or any | 272 |
political subdivision or any office or agency of a political | 273 |
subdivision pays membership dues, that are incurred in connection | 274 |
with the person's official duties and that exceed one hundred | 275 |
dollars aggregated per calendar year; | 276 |
(10) If the financial disclosure statement is filed by a | 277 |
public official or employee described in division (B)(2) of | 278 |
section 101.73 of the Revised Code or division (B)(2) of section | 279 |
121.63 of the Revised Code who receives a statement from a | 280 |
legislative agent, executive agency lobbyist, or employer that | 281 |
contains the information described in division (F)(2) of section | 282 |
101.73 of the Revised Code or division (G)(2) of section 121.63 of | 283 |
the Revised Code, all of the nondisputed information contained in | 284 |
the statement delivered to that public official or employee by the | 285 |
legislative agent, executive agency lobbyist, or employer under | 286 |
division (F)(2) of section 101.73 or (G)(2) of section 121.63 of | 287 |
the Revised Code. As used in division (A)(10) of this section, | 288 |
"legislative agent," "executive agency lobbyist," and "employer" | 289 |
have the same meanings as in sections 101.70 and 121.60 of the | 290 |
Revised Code. | 291 |
A person may file a statement required by this section in | 292 |
person or by mail. A person who is a candidate for elective office | 293 |
shall file the statement no later than the thirtieth day before | 294 |
the primary, special, or general election at which the candidacy | 295 |
is to be voted on, whichever election occurs soonest, except that | 296 |
a person who is a write-in candidate shall file the statement no | 297 |
later than the twentieth day before the earliest election at which | 298 |
the person's candidacy is to be voted on. A person who holds | 299 |
elective office shall file the statement on or before the | 300 |
fifteenth day of April of each year unless the person is a | 301 |
candidate for office. A person who is appointed to fill a vacancy | 302 |
for an unexpired term in an elective office shall file the | 303 |
statement within fifteen days after the person qualifies for | 304 |
office. Other persons shall file an annual statement on or before | 305 |
the fifteenth day of April or, if appointed or employed after that | 306 |
date, within ninety days after appointment or employment. No | 307 |
person shall be required to file with the appropriate ethics | 308 |
commission more than one statement or pay more than one filing fee | 309 |
for any one calendar year. | 310 |
The appropriate ethics commission, for good cause, may extend | 311 |
for a reasonable time the deadline for filing a statement under | 312 |
this section. | 313 |
A statement filed under this section is subject to public | 314 |
inspection at locations designated by the appropriate ethics | 315 |
commission except as otherwise provided in this section. | 316 |
(B) The Ohio ethics commission, the joint legislative ethics | 317 |
committee, and the board of commissioners on grievances and | 318 |
discipline of the supreme court, using the rule-making procedures | 319 |
of Chapter 119. of the Revised Code, may require any class of | 320 |
public officials or employees under its jurisdiction and not | 321 |
specifically excluded by this section whose positions involve a | 322 |
substantial and material exercise of administrative discretion in | 323 |
the formulation of public policy, expenditure of public funds, | 324 |
enforcement of laws and rules of the state or a county or city, or | 325 |
the execution of other public trusts, to file an annual statement | 326 |
on or before the fifteenth day of April under division (A) of this | 327 |
section. The appropriate ethics commission shall send the public | 328 |
officials or employees written notice of the requirement by the | 329 |
fifteenth day of February of each year the filing is required | 330 |
unless the public official or employee is appointed after that | 331 |
date, in which case the notice shall be sent within thirty days | 332 |
after appointment, and the filing shall be made not later than | 333 |
ninety days after appointment. | 334 |
Except for disclosure statements filed by members of the | 335 |
board of trustees and the executive director of the tobacco use | 336 |
prevention and control foundation and members of the board of | 337 |
trustees and the executive director of the southern Ohio | 338 |
agricultural and community development foundation, disclosure | 339 |
statements filed under this division with the Ohio ethics | 340 |
commission by members of boards, commissions, or bureaus of the | 341 |
state for which no compensation is received other than reasonable | 342 |
and necessary expenses shall be kept confidential. Disclosure | 343 |
statements filed with the Ohio ethics commission under division | 344 |
(A) of this section by business managers, treasurers, and | 345 |
superintendents of city, local, exempted village, joint | 346 |
vocational, or cooperative education school districts or | 347 |
educational service centers shall be kept confidential, except | 348 |
that any person conducting an audit of any such school district or | 349 |
educational service center pursuant to section 115.56 or Chapter | 350 |
117. of the Revised Code may examine the disclosure statement of | 351 |
any business manager, treasurer, or superintendent of that school | 352 |
district or educational service center. The Ohio ethics commission | 353 |
shall examine each disclosure statement required to be kept | 354 |
confidential to determine whether a potential conflict of interest | 355 |
exists for the person who filed the disclosure statement. A | 356 |
potential conflict of interest exists if the private interests of | 357 |
the person, as indicated by the person's disclosure statement, | 358 |
might interfere with the public interests the person is required | 359 |
to serve in the exercise of the person's authority and duties in | 360 |
the person's office or position of employment. If the commission | 361 |
determines that a potential conflict of interest exists, it shall | 362 |
notify the person who filed the disclosure statement and shall | 363 |
make the portions of the disclosure statement that indicate a | 364 |
potential conflict of interest subject to public inspection in the | 365 |
same manner as is provided for other disclosure statements. Any | 366 |
portion of the disclosure statement that the commission determines | 367 |
does not indicate a potential conflict of interest shall be kept | 368 |
confidential by the commission and shall not be made subject to | 369 |
public inspection, except as is necessary for the enforcement of | 370 |
Chapters 102. and 2921. of the Revised Code and except as | 371 |
otherwise provided in this division. | 372 |
(C) No person shall knowingly fail to file, on or before the | 373 |
applicable filing deadline established under this section, a | 374 |
statement that is required by this section. | 375 |
(D) No person shall knowingly file a false statement that is | 376 |
required to be filed under this section. | 377 |
(E)(1) Except as provided in divisions (E)(2) and (3) of this | 378 |
section, the statement required by division (A) or (B) of this | 379 |
section shall be accompanied by a filing fee of forty dollars. | 380 |
(2) The statement required by division (A) of this section | 381 |
shall be accompanied by the following filing fee to be paid by the | 382 |
person who is elected or appointed to, or is a candidate for, any | 383 |
of the following offices: | 384 |
For state office, except member of the | 385 | ||||
state board of education | $65 | 386 | |||
For office of member of United States | 387 | ||||
congress or member of general assembly | $40 | 388 | |||
For county office | $40 | 389 | |||
For city office | $25 | 390 | |||
For office of member of the state board | 391 | ||||
of education | $25 | 392 | |||
For office of member of a city, local, | 393 | ||||
exempted village, or cooperative | 394 | ||||
education board of | 395 | ||||
education or educational service | 396 | ||||
center governing board | $20 | 397 | |||
For position of business manager, | 398 | ||||
treasurer, or superintendent of a | 399 | ||||
city, local, exempted village, joint | 400 | ||||
vocational, or cooperative education | 401 | ||||
school district or | 402 | ||||
educational service center | $20 | 403 |
(3) No judge of a court of record or candidate for judge of a | 404 |
court of record, and no referee or magistrate serving a court of | 405 |
record, shall be required to pay the fee required under division | 406 |
(E)(1) or (2) or (F) of this section. | 407 |
(4) For any public official who is appointed to a nonelective | 408 |
office of the state and for any employee who holds a nonelective | 409 |
position in a public agency of the state, the state agency that is | 410 |
the primary employer of the state official or employee shall pay | 411 |
the fee required under division (E)(1) or (F) of this section. | 412 |
(F) If a statement required to be filed under this section is | 413 |
not filed by the date on which it is required to be filed, the | 414 |
appropriate ethics commission shall assess the person required to | 415 |
file the statement a late filing fee of ten dollars for each day | 416 |
the statement is not filed, except that the total amount of the | 417 |
late filing fee shall not exceed two hundred fifty dollars. | 418 |
(G)(1) The appropriate ethics commission other than the Ohio | 419 |
ethics commission shall deposit all fees it receives under | 420 |
divisions (E) and (F) of this section into the general revenue | 421 |
fund of the state. | 422 |
(2) The Ohio ethics commission shall deposit all receipts, | 423 |
including, but not limited to, fees it receives under divisions | 424 |
(E) and (F) of this section and all moneys it receives from | 425 |
settlements under division (G) of section 102.06 of the Revised | 426 |
Code, into the Ohio ethics commission fund, which is hereby | 427 |
created in the state treasury. All moneys credited to the fund | 428 |
shall be used solely for expenses related to the operation and | 429 |
statutory functions of the commission. | 430 |
(H) Division (A) of this section does not apply to a person | 431 |
elected or appointed to the office of precinct, ward, or district | 432 |
committee member under Chapter 3517. of the Revised Code; a | 433 |
presidential elector; a delegate to a national convention; village | 434 |
or township officials and employees; any physician or psychiatrist | 435 |
who is paid a salary or wage in accordance with schedule C of | 436 |
section 124.15 or schedule E-2 of section 124.152 of the Revised | 437 |
Code and whose primary duties do not require the exercise of | 438 |
administrative discretion; or any member of a board, commission, | 439 |
or bureau of any county or city who receives less than one | 440 |
thousand dollars per year for serving in that position. | 441 |
Sec. 102.03. (A)(1) No present or former public official or | 442 |
employee shall, during public employment or service or for twelve | 443 |
months thereafter, represent a client or act in a representative | 444 |
capacity for any person on any matter in which the public official | 445 |
or employee personally participated as a public official or | 446 |
employee through decision, approval, disapproval, recommendation, | 447 |
the rendering of advice, investigation, or other substantial | 448 |
exercise of administrative discretion. | 449 |
(2) For twenty-four months after the conclusion of service, | 450 |
no former commissioner or attorney examiner of the public | 451 |
utilities commission shall represent a public utility, as defined | 452 |
in section 4905.02 of the Revised Code, or act in a representative | 453 |
capacity on behalf of such a utility before any state board, | 454 |
commission, or agency. | 455 |
(3) For twenty-four months after the conclusion of employment | 456 |
or service, no former public official or employee who personally | 457 |
participated as a public official or employee through decision, | 458 |
approval, disapproval, recommendation, the rendering of advice, | 459 |
the development or adoption of solid waste management plans, | 460 |
investigation, inspection, or other substantial exercise of | 461 |
administrative discretion under Chapter 343. or 3734. of the | 462 |
Revised Code shall represent a person who is the owner or operator | 463 |
of a facility, as defined in section 3734.01 of the Revised Code, | 464 |
or who is an applicant for a permit or license for a facility | 465 |
under that chapter, on any matter in which the public official or | 466 |
employee personally participated as a public official or employee. | 467 |
(4) For a period of one year after the conclusion of | 468 |
employment or service as a member or employee of the general | 469 |
assembly, no former member or employee of the general assembly | 470 |
shall represent, or act in a representative capacity for, any | 471 |
person on any matter before the general assembly, any committee of | 472 |
the general assembly, or the controlling board. Division (A)(4) of | 473 |
this section does not apply to or affect a person who separates | 474 |
from service with the general assembly on or before December 31, | 475 |
1995. As used in division (A)(4) of this section "person" does not | 476 |
include any state agency or political subdivision of the state. | 477 |
(5) As used in divisions (A)(1), (2), and (3) of this | 478 |
section, "matter" includes any case, proceeding, application, | 479 |
determination, issue, or question, but does not include the | 480 |
proposal, consideration, or enactment of statutes, rules, | 481 |
ordinances, resolutions, or charter or constitutional amendments. | 482 |
As used in division (A)(4) of this section, "matter" includes the | 483 |
proposal, consideration, or enactment of statutes, resolutions, or | 484 |
constitutional amendments. As used in division (A) of this | 485 |
section, "represent" includes any formal or informal appearance | 486 |
before, or any written or oral communication with, any public | 487 |
agency on behalf of any person. | 488 |
(6) Nothing contained in division (A) of this section shall | 489 |
prohibit, during such period, a former public official or employee | 490 |
from being retained or employed to represent, assist, or act in a | 491 |
representative capacity for the public agency by which the public | 492 |
official or employee was employed or on which the public official | 493 |
or employee served. | 494 |
(7) Division (A) of this section shall not be construed to | 495 |
prohibit the performance of ministerial functions, including, but | 496 |
not limited to, the filing or amendment of tax returns, | 497 |
applications for permits and licenses, incorporation papers, and | 498 |
other similar documents. | 499 |
(B) No present or former public official or employee shall | 500 |
disclose or use, without appropriate authorization, any | 501 |
information acquired by the public official or employee in the | 502 |
course of the public official's or employee's official duties that | 503 |
is confidential because of statutory provisions, or that has been | 504 |
clearly designated to the public official or employee as | 505 |
confidential when that confidential designation is warranted | 506 |
because of the status of the proceedings or the circumstances | 507 |
under which the information was received and preserving its | 508 |
confidentiality is necessary to the proper conduct of government | 509 |
business. | 510 |
(C) No public official or employee shall participate within | 511 |
the scope of duties as a public official or employee, except | 512 |
through ministerial functions as defined in division (A) of this | 513 |
section, in any license or rate-making proceeding that directly | 514 |
affects the license or rates of any person, partnership, trust, | 515 |
business trust, corporation, or association in which the public | 516 |
official or employee or immediate family owns or controls more | 517 |
than five per cent. No public official or employee shall | 518 |
participate within the scope of duties as a public official or | 519 |
employee, except through ministerial functions as defined in | 520 |
division (A) of this section, in any license or rate-making | 521 |
proceeding that directly affects the license or rates of any | 522 |
person to whom the public official or employee or immediate | 523 |
family, or a partnership, trust, business trust, corporation, or | 524 |
association of which the public official or employee or the public | 525 |
official's or employee's immediate family owns or controls more | 526 |
than five per cent, has sold goods or services totaling more than | 527 |
one thousand dollars during the preceding year, unless the public | 528 |
official or employee has filed a written statement acknowledging | 529 |
that sale with the clerk or secretary of the public agency and the | 530 |
statement is entered in any public record of the agency's | 531 |
proceedings. This division shall not be construed to require the | 532 |
disclosure of clients of attorneys or persons licensed under | 533 |
section 4732.12 or 4732.15 of the Revised Code, or patients of | 534 |
persons certified under section 4731.14 of the Revised Code. | 535 |
(D) No public official or employee shall use or authorize the | 536 |
use of the authority or influence of office or employment to | 537 |
secure anything of value or the promise or offer of anything of | 538 |
value that is of such a character as to manifest a substantial and | 539 |
improper influence upon the public official or employee with | 540 |
respect to that person's duties. | 541 |
(E) No public official or employee shall solicit or accept | 542 |
anything of value that is of such a character as to manifest a | 543 |
substantial and improper influence upon the public official or | 544 |
employee with respect to that person's duties. | 545 |
(F) No person shall promise or give to a public official or | 546 |
employee anything of value that is of such a character as to | 547 |
manifest a substantial and improper influence upon the public | 548 |
official or employee with respect to that person's duties. | 549 |
(G) In the absence of bribery or another offense under the | 550 |
Revised Code or a purpose to defraud, contributions made to a | 551 |
campaign committee, political party, legislative campaign fund, | 552 |
political action committee, or political contributing entity on | 553 |
behalf of an elected public officer or other public official or | 554 |
employee who seeks elective office shall be considered to accrue | 555 |
ordinarily to the public official or employee for the purposes of | 556 |
divisions (D), (E), and (F) of this section. | 557 |
As used in this division, "contributions," "campaign | 558 |
committee," "political party," "legislative campaign fund," | 559 |
"political action committee," and "political contributing entity" | 560 |
have the same meanings as in section 3517.01 of the Revised Code. | 561 |
(H)(1) No public official or employee, except for the | 562 |
president or other chief administrative officer of or a member of | 563 |
a board of trustees of a state institution of higher education as | 564 |
defined in section 3345.011 of the Revised Code, who is required | 565 |
to file a financial disclosure statement under section 102.02 of | 566 |
the Revised Code shall solicit or accept, and no person shall give | 567 |
to that public official or employee, an honorarium. This division | 568 |
and divisions (D), (E), and (F) of this section do not prohibit a | 569 |
public official or employee who is required to file a financial | 570 |
disclosure statement under section 102.02 of the Revised Code from | 571 |
accepting and do not prohibit a person from giving to that public | 572 |
official or employee the payment of actual travel expenses, | 573 |
including any expenses incurred in connection with the travel for | 574 |
lodging, and meals, food, and beverages provided to the public | 575 |
official or employee at a meeting at which the public official or | 576 |
employee participates in a panel, seminar, or speaking engagement | 577 |
or provided to the public official or employee at a meeting or | 578 |
convention of a national organization to which any state agency, | 579 |
including, but not limited to, any state legislative agency or | 580 |
state institution of higher education as defined in section | 581 |
3345.011 of the Revised Code, pays membership dues. | 582 |
provided in division (H)(2) of this section, this division and | 583 |
divisions (D), (E), and (F) of this section do not prohibit a | 584 |
public official or employee who is not required to file a | 585 |
financial disclosure statement under section 102.02 of the Revised | 586 |
Code from accepting and do not prohibit a person from promising or | 587 |
giving to that public official or employee an honorarium or the | 588 |
payment of travel, meal, and lodging expenses if the honorarium, | 589 |
expenses, or both were paid in recognition of demonstrable | 590 |
business, professional, or esthetic interests of the public | 591 |
official or employee that exist apart from public office or | 592 |
employment, including, but not limited to, such a demonstrable | 593 |
interest in public speaking and were not paid by any person or | 594 |
other entity, or by any representative or association of those | 595 |
persons or entities, that is regulated by, doing business with, or | 596 |
seeking to do business with the department, division, institution, | 597 |
board, commission, authority, bureau, or other instrumentality of | 598 |
the governmental entity with which the public official or employee | 599 |
serves. | 600 |
(2) No person who is a member of the board of a state | 601 |
retirement system, a state retirement system investment officer, | 602 |
or an employee of a state retirement system whose position | 603 |
involves substantial and material exercise of discretion in the | 604 |
investment of retirement system funds shall solicit or accept, and | 605 |
no person shall give to that board member, officer, or employee, | 606 |
payment of actual travel expenses, including expenses incurred | 607 |
with the travel for lodging, meals, food, and beverages. | 608 |
(I) A public official or employee may accept travel, meals, | 609 |
and lodging or expenses or reimbursement of expenses for travel, | 610 |
meals, and lodging in connection with conferences, seminars, and | 611 |
similar events related to official duties if the travel, meals, | 612 |
and lodging, expenses, or reimbursement is not of such a character | 613 |
as to manifest a substantial and improper influence upon the | 614 |
public official or employee with respect to that person's duties. | 615 |
The house of representatives and senate, in their code of ethics, | 616 |
and the Ohio ethics commission, under section 111.15 of the | 617 |
Revised Code, may adopt rules setting standards and conditions for | 618 |
the furnishing and acceptance of such travel, meals, and lodging, | 619 |
expenses, or reimbursement. | 620 |
A person who acts in compliance with this division and any | 621 |
applicable rules adopted under it, or any applicable, similar | 622 |
rules adopted by the supreme court governing judicial officers and | 623 |
employees, does not violate division (D), (E), or (F) of this | 624 |
section. This division does not preclude any person from seeking | 625 |
an advisory opinion from the appropriate ethics commission under | 626 |
section 102.08 of the Revised Code. | 627 |
(J) For purposes of divisions (D), (E), and (F) of this | 628 |
section, the membership of a public official or employee in an | 629 |
organization shall not be considered, in and of itself, to be of | 630 |
such a character as to manifest a substantial and improper | 631 |
influence on the public official or employee with respect to that | 632 |
person's duties. As used in this division, "organization" means a | 633 |
church or a religious, benevolent, fraternal, or professional | 634 |
organization that is tax exempt under subsection 501(a) and | 635 |
described in subsection 501(c)(3), (4), (8), (10), or (19) of the | 636 |
"Internal Revenue Code of 1986." This division does not apply to a | 637 |
public official or employee who is an employee of an organization, | 638 |
serves as a trustee, director, or officer of an organization, or | 639 |
otherwise holds a fiduciary relationship with an organization. | 640 |
This division does not allow a public official or employee who is | 641 |
a member of an organization to participate, formally or | 642 |
informally, in deliberations, discussions, or voting on a matter | 643 |
or to use his official position with regard to the interests of | 644 |
the organization on the matter if the public official or employee | 645 |
has assumed a particular responsibility in the organization with | 646 |
respect to the matter or if the matter would affect that person's | 647 |
personal, pecuniary interests. | 648 |
(K) It is not a violation of this section for a prosecuting | 649 |
attorney to appoint assistants and employees in accordance with | 650 |
division (B) of section 309.06 and section 2921.421 of the Revised | 651 |
Code, for a chief legal officer of a municipal corporation or an | 652 |
official designated as prosecutor in a municipal corporation to | 653 |
appoint assistants and employees in accordance with sections | 654 |
733.621 and 2921.421 of the Revised Code, for a township law | 655 |
director appointed under section 504.15 of the Revised Code to | 656 |
appoint assistants and employees in accordance with sections | 657 |
504.151 and 2921.421 of the Revised Code, or for a coroner to | 658 |
appoint assistants and employees in accordance with division (B) | 659 |
of section 313.05 of the Revised Code. | 660 |
As used in this division, "chief legal officer" has the same | 661 |
meaning as in section 733.621 of the Revised Code. | 662 |
Sec. 102.06. (A) The appropriate ethics commission shall | 663 |
receive and may initiate complaints against persons subject to | 664 |
Chapter 102. of the Revised Code concerning conduct alleged to be | 665 |
in violation of this chapter or section 2921.42 or 2921.43 of the | 666 |
Revised Code. All complaints except those by the commission shall | 667 |
be by affidavit made on personal knowledge, subject to the | 668 |
penalties of perjury. Complaints by the commission shall be by | 669 |
affidavit, based upon reasonable cause to believe that a violation | 670 |
has occurred. | 671 |
(B) The commission shall investigate complaints, may | 672 |
investigate charges presented to it, and may request further | 673 |
information, including the specific amount of income from a | 674 |
source, from any person filing with the commission a statement | 675 |
required by section 102.02 of the Revised Code, if the information | 676 |
sought is directly relevant to a complaint or charges received by | 677 |
the commission pursuant to this section. This information is | 678 |
confidential, except that the commission, at its discretion, may | 679 |
share information gathered in the course of any investigation | 680 |
with, or disclose the information to, the inspector general, any | 681 |
appropriate prosecuting authority, any law enforcement agency, or | 682 |
any other appropriate ethics commission. The person so requested | 683 |
shall furnish the information to the commission, unless within | 684 |
fifteen days from the date of the request the person files an | 685 |
action for declaratory judgment challenging the legitimacy of the | 686 |
request in the court of common pleas of the county of the person's | 687 |
residence, the person's place of employment, or Franklin county. | 688 |
The requested information need not be furnished to the commission | 689 |
during the pendency of the judicial proceedings. Proceedings of | 690 |
the commission in connection with the declaratory judgment action | 691 |
shall be kept confidential except as otherwise provided by this | 692 |
section. Before the commission proceeds to take any formal action | 693 |
against a person who is the subject of an investigation based on | 694 |
charges presented to the commission, a complaint shall be filed | 695 |
against the person. If the commission finds that a complaint is | 696 |
not frivolous, and there is reasonable cause to believe that the | 697 |
facts alleged in a complaint constitute a violation of section | 698 |
102.02, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised | 699 |
Code, it shall hold a hearing. If the commission does not so find, | 700 |
it shall dismiss the complaint and notify the accused person in | 701 |
writing of the dismissal of the complaint. The commission shall | 702 |
not make a report of its finding unless the accused person | 703 |
requests a report. Upon the request of the accused person, the | 704 |
commission shall make a public report of its finding. The person | 705 |
against whom the complaint is directed shall be given reasonable | 706 |
notice by certified mail of the date, time, and place of the | 707 |
hearing and a statement of the charges and the law directly | 708 |
involved and shall be given the opportunity to be represented by | 709 |
counsel, to have counsel appointed for the person if the person is | 710 |
unable to afford counsel without undue hardship, to examine the | 711 |
evidence against the person, to produce evidence and to call and | 712 |
subpoena witnesses in the person's defense, to confront the | 713 |
person's accusers, and to cross-examine witnesses. The commission | 714 |
shall have a stenographic record made of the hearing. The hearing | 715 |
shall be closed to the public. | 716 |
(C)(1)(a) If upon the basis of the hearing, the commission | 717 |
finds by a preponderance of the evidence that the facts alleged in | 718 |
the complaint are true and constitute a violation of section | 719 |
102.02, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised | 720 |
Code, it shall report its findings to the appropriate prosecuting | 721 |
authority for proceedings in prosecution of the violation and to | 722 |
the appointing or employing authority of the accused. If the | 723 |
accused person is a member of the public employees retirement | 724 |
board, state teachers retirement board, school employees | 725 |
retirement board, board of trustees of the Ohio police and fire | 726 |
pension fund, or state highway patrol retirement board, the | 727 |
commission also shall report its findings to the Ohio retirement | 728 |
study council. | 729 |
(b) If the Ohio ethics commission reports its findings to the | 730 |
appropriate prosecuting authority under division (C)(1)(a) of this | 731 |
section and the prosecuting authority has not initiated any | 732 |
official action on those findings within ninety days after | 733 |
receiving the commission's report of them, then the commission may | 734 |
publicly comment that no official action has been taken on its | 735 |
findings, except that the commission shall make no comment in | 736 |
violation of the Rules of Criminal Procedure or about any | 737 |
indictment that has been sealed pursuant to any law or those | 738 |
rules. The commission shall make no comment regarding the merits | 739 |
of its findings. As used in division (C)(1)(b) of this section, | 740 |
"official action" means prosecution, closure after investigation, | 741 |
or grand jury action resulting in a true bill of indictment or no | 742 |
true bill of indictment. | 743 |
(2) If the appropriate ethics commission does not find by a | 744 |
preponderance of the evidence that the facts alleged in the | 745 |
complaint are true and constitute a violation of section 102.02, | 746 |
102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised Code or | 747 |
if the commission has not scheduled a hearing within ninety days | 748 |
after the complaint is filed or has not finally disposed of the | 749 |
complaint within six months after it has been heard, it shall | 750 |
dismiss the complaint and notify the accused person in writing of | 751 |
the dismissal of the complaint. The commission shall not make a | 752 |
report of its finding unless the accused person requests a report. | 753 |
Upon the request of the accused person, the commission shall make | 754 |
a public report of the finding, but in this case all evidence and | 755 |
the record of the hearing shall remain confidential unless the | 756 |
accused person also requests that the evidence and record be made | 757 |
public. Upon request by the accused person, the commission shall | 758 |
make the evidence and the record available for public inspection. | 759 |
(D) The commission, or a member of the commission, may | 760 |
administer oaths, and the commission may issue subpoenas to any | 761 |
person in the state compelling the attendance of witnesses and the | 762 |
production of relevant papers, books, accounts, and records. The | 763 |
commission shall issue subpoenas to compel the attendance of | 764 |
witnesses and the production of documents upon the request of an | 765 |
accused person. Section 101.42 of the Revised Code shall govern | 766 |
the issuance of these subpoenas insofar as applicable. Upon the | 767 |
refusal of any person to obey a subpoena or to be sworn or to | 768 |
answer as a witness, the commission may apply to the court of | 769 |
common pleas of Franklin county under section 2705.03 of the | 770 |
Revised Code. The court shall hold proceedings in accordance with | 771 |
Chapter 2705. of the Revised Code. The commission or the accused | 772 |
person may take the depositions of witnesses residing within or | 773 |
without the state in the same manner as prescribed by law for the | 774 |
taking of depositions in civil actions in the court of common | 775 |
pleas. | 776 |
(E) At least once each year, the Ohio ethics commission shall | 777 |
report on its activities of the immediately preceding year to the | 778 |
majority and minority leaders of the senate and house of | 779 |
representatives of the general assembly. The report shall indicate | 780 |
the total number of complaints received, initiated, and | 781 |
investigated by the commission, the total number of complaints for | 782 |
which formal hearings were held, and the total number of | 783 |
complaints for which formal prosecution was recommended or | 784 |
requested by the commission. The report also shall indicate the | 785 |
nature of the inappropriate conduct alleged in each complaint and | 786 |
the governmental entity with which any employee or official that | 787 |
is the subject of a complaint was employed at the time of the | 788 |
alleged inappropriate conduct. | 789 |
(F) All papers, records, affidavits, and documents upon any | 790 |
complaint, inquiry, or investigation relating to the proceedings | 791 |
of the appropriate commission shall be sealed and are private and | 792 |
confidential, except as otherwise provided in this section and | 793 |
section 102.07 of the Revised Code. | 794 |
(G)(1) When a complaint or charge is before it, the Ohio | 795 |
ethics commission or the appropriate prosecuting authority, in | 796 |
consultation with the person filing the complaint or charge, the | 797 |
accused, and any other person the commission or prosecuting | 798 |
authority considers necessary, may compromise or settle the | 799 |
complaint or charge with the agreement of the accused. The | 800 |
compromise or settlement may include mediation, restitution, | 801 |
rescission of affected contracts, forfeiture of any benefits | 802 |
resulting from a violation or potential violation of law, | 803 |
resignation of a public official or employee, or any other relief | 804 |
that is agreed upon between the commission or prosecuting | 805 |
authority and the accused. | 806 |
(2) Any settlement agreement entered into under division | 807 |
(G)(1) of this section shall be in writing and be accompanied by a | 808 |
statement of the findings of the commission or prosecuting | 809 |
authority and the reasons for entering into the agreement. The | 810 |
commission or prosecuting authority shall retain the agreement and | 811 |
statement in
the commission's or
prosecuting
| 812 |
authority's office and, in the commission's or prosecuting | 813 |
authority's discretion, may make the agreement, the statement, and | 814 |
any supporting information public, unless the agreement provides | 815 |
otherwise. | 816 |
(3) If a settlement agreement is breached by the accused, the | 817 |
commission or prosecuting authority, in the commission's or | 818 |
prosecuting authority's discretion, may rescind the agreement and | 819 |
reinstitute any investigation, hearing, or prosecution of the | 820 |
accused. No information obtained from the accused in reaching the | 821 |
settlement that is not otherwise discoverable from the accused | 822 |
shall be used in any proceeding before the commission or by the | 823 |
appropriate prosecuting authority in prosecuting the violation. | 824 |
Notwithstanding any other section of the Revised Code, if a | 825 |
settlement agreement is breached, any statute of limitations for a | 826 |
violation of this chapter or section 2921.42 or 2921.43 of the | 827 |
Revised Code is tolled from the date the complaint or charge is | 828 |
filed until the date the settlement agreement is breached. | 829 |
Sec. 109.98. As used in this section, "state retirement | 830 |
board" means the public employees retirement board, board of | 831 |
trustees of the Ohio police and fire pension fund, school | 832 |
employees retirement board, state teachers retirement board, and | 833 |
state highway patrol retirement board. | 834 |
If a member of a state retirement board breaches the member's | 835 |
fiduciary duty to the retirement system, the attorney general may | 836 |
maintain a civil action against the board member for harm | 837 |
resulting from that breach. The attorney general may recover | 838 |
damages or be granted injunctive relief, which shall include the | 839 |
enjoinment of specified activities and the removal of the member | 840 |
from the board. Any damages awarded shall be paid to the | 841 |
retirement system. | 842 |
Sec. 111.30. (A) As used in this section, "state retirement | 843 |
board" means the public employees retirement board, board of | 844 |
trustees of the Ohio police and fire pension fund, school | 845 |
employees retirement board, state teachers retirement board, and | 846 |
state highway patrol retirement board. | 847 |
(B) The secretary of state shall do all of the following: | 848 |
(1) Adopt rules in accordance with Chapter 119. of the | 849 |
Revised Code governing the election of state retirement board | 850 |
members under sections 145.05, 742.04, 3307.07, 3309.07, and | 851 |
5505.041 of the Revised Code, including special elections provided | 852 |
for by section 145.051 of the Revised Code. The rules shall | 853 |
include rules governing nominating petitions for the elections. | 854 |
(2) Oversee the administration of board member elections by | 855 |
state retirement boards; | 856 |
(3) Certify the validity of nominating petitions for the | 857 |
elections; | 858 |
(4) Certify the results of the elections; | 859 |
(5) Prescribe forms for campaign finance disclosure | 860 |
statements for the purpose of sections 145.053, 742.042, 3307.072, | 861 |
3309.072, and 5505.044 of the Revised Code and accept the forms | 862 |
from candidates filing them with the secretary pursuant to those | 863 |
sections; | 864 |
(6) Oversee elections held under sections 145.06, 742.05, | 865 |
3307.06, 3309.06, and 5505.042 of the Revised Code to fill | 866 |
vacancies in the boards; | 867 |
(7) Certify the results of the elections to fill vacancies in | 868 |
the boards. | 869 |
Sec. 117.10. The auditor of state shall audit all public | 870 |
offices as provided in this chapter. The auditor of state also may | 871 |
audit the accounts of private institutions, associations, boards, | 872 |
and corporations receiving public money for their use and may | 873 |
require of them annual reports in such form as the auditor of | 874 |
state prescribes. | 875 |
If the auditor of state performs or contracts for the | 876 |
performance of an audit, including a special audit, of the public | 877 |
employees retirement system, school employees retirement system, | 878 |
state teachers retirement system, state highway patrol retirement | 879 |
system, or Ohio police and fire pension fund, the auditor of state | 880 |
shall make a timely report of the results of the audit to the Ohio | 881 |
retirement study council. | 882 |
The auditor of state may audit the accounts of any provider | 883 |
as defined in section 5111.06 of the Revised Code, if requested by | 884 |
the department of job and family services. | 885 |
If a public office has been audited by an agency of the | 886 |
United States government, the auditor of state may, if satisfied | 887 |
that the federal audit has been conducted according to principles | 888 |
and procedures not contrary to those of the auditor of state, use | 889 |
and adopt the federal audit and report in lieu of an audit by the | 890 |
auditor of state's own office. | 891 |
Within thirty days after the creation or dissolution or the | 892 |
winding up of the affairs of any public office, that public office | 893 |
shall notify the auditor of state in writing that this action has | 894 |
occurred. | 895 |
Sec. 145.04. The general administration and management of | 896 |
the public employees retirement system and the making effective of | 897 |
Chapter 145. of the Revised Code, are hereby vested in a board to | 898 |
be known as the "public employees retirement board," which shall | 899 |
consist of | 900 |
(A) The | 901 |
(B) The auditor of state; | 902 |
(C) The director of administrative services; | 903 |
(D) | 904 |
shall be a state employee member of the system, who shall be | 905 |
elected by ballot by the state employee members of the system from | 906 |
among their number; another of whom shall be a county employee | 907 |
member of the system, who shall be elected by ballot by the county | 908 |
employee members of the system from among their number; another of | 909 |
whom shall be a county elected official member of the system, who | 910 |
shall be elected by ballot by the county elected official members | 911 |
of the system from among their number; another of whom shall be a | 912 |
municipal employee member of the system, who shall be elected by | 913 |
ballot by the municipal employee members of the system from among | 914 |
their number; another of whom shall be a university or college | 915 |
employee member of the system, who shall be elected by ballot by | 916 |
the university and college employee members of the system from | 917 |
among their number; and another of whom shall be a park district, | 918 |
conservancy district, sanitary district, health district, public | 919 |
library, township, metropolitan housing authority, union cemetery, | 920 |
joint hospital, or institutional commissary employee member of the | 921 |
system, who shall be elected by ballot by the park district, | 922 |
conservancy district, sanitary district, health district, | 923 |
metropolitan housing authority, township, public library, union | 924 |
cemetery, joint hospital, and institutional commissary employee | 925 |
members of the system from among their number, in a manner to be | 926 |
approved by the board. Members of the system who are receiving a | 927 |
disability benefit under this chapter are ineligible for | 928 |
membership on the board as employee members. | 929 |
(E) One member, known as the retirant member, who shall be a | 930 |
former member of the public employees retirement system who is a | 931 |
resident of this state and a recipient of age and service | 932 |
retirement, a disability benefit, or benefits paid under a PERS | 933 |
defined contribution plan. The retirant member shall be elected by | 934 |
ballot by former members of the system who are receiving age and | 935 |
service retirement, a disability benefit, or benefits paid under a | 936 |
PERS defined contribution plan; | 937 |
(F) One member, known as the university or college | 938 |
administrator member, who shall be a university or college | 939 |
administrator appointed by the governor. The administrator | 940 |
member's term shall be for four years, beginning on January 1 and | 941 |
ending on December 31. The initial administrator member shall be | 942 |
appointed and take office on the January 1 that occurs not less | 943 |
than ninety days after the effective date of this amendment. | 944 |
Any university or college administrator appointed to fill a | 945 |
vacancy occurring prior to the expiration of the term for which | 946 |
the administrator member's predecessor was appointed shall hold | 947 |
office until the end of such term. The administrator member shall | 948 |
continue in office subsequent to the expiration date of the | 949 |
member's term until the member's successor takes office, or until | 950 |
a period of sixty days has elapsed, whichever occurs first. | 951 |
Sec. 145.041. Each newly elected member of the public | 952 |
employees retirement board and each individual appointed to fill a | 953 |
vacancy on the board, shall, not later than ninety days after | 954 |
commencing service as a board member, complete the orientation | 955 |
program component of the retirement board member education program | 956 |
established under section 171.50 of the Revised Code. | 957 |
Each member of the board who has served a year or longer as a | 958 |
board member shall, not less than twice each year, attend one or | 959 |
more programs that are part of the continuing education component | 960 |
of the retirement board member education program established under | 961 |
section 171.50 of the Revised Code. | 962 |
Sec. 145.05. (A) The terms of office of employee members of | 963 |
the public employees retirement board shall be for four years each | 964 |
beginning on the first day of January following election. The | 965 |
election of the county employee member of the board and the | 966 |
employee member of the board representing public library, health | 967 |
district, park district, conservancy district, sanitary district, | 968 |
township, metropolitan housing authority, union cemetery, joint | 969 |
hospital, and institutional commissary employees shall be held on | 970 |
the first Monday in October, 1945, and on the first Monday in | 971 |
October in each fourth year thereafter. The election of the state | 972 |
employee member of the board and the municipal employee member of | 973 |
the board shall be held on the first Monday in October, 1946, and | 974 |
on the first Monday in October in each fourth year thereafter. The | 975 |
election of the initial university-college employee member of the | 976 |
board shall be held on the first Monday in October, 1978, and | 977 |
elections for subsequent university-college employee members of | 978 |
the board shall be held on the first Monday in October in each | 979 |
fourth year thereafter. The election of the county elected | 980 |
official employee member shall be held on the first Monday in | 981 |
October that occurs not less than ninety days after the effective | 982 |
date of this amendment, and elections for subsequent county | 983 |
elected official employee members of the board shall be held on | 984 |
the first Monday in October in each fourth year thereafter. | 985 |
(B) The term of office of the retirant member of the public | 986 |
employees retirement board shall be for four years beginning on | 987 |
the first day of January following the election. The election of | 988 |
the initial retirant member of the board shall be held on the | 989 |
first Monday in October, 1978, and elections for subsequent | 990 |
retirant members of the board shall be held on the first Monday in | 991 |
October in each fourth year thereafter. | 992 |
(C) All elections for employee members of the public | 993 |
employees retirement board shall be held under the direction of | 994 |
the board in accordance with rules adopted under section 111.30 of | 995 |
the Revised Code. Any member of the public employees retirement | 996 |
system, except a member who is receiving a disability benefit | 997 |
under this chapter, is eligible for election as an employee member | 998 |
of the board to represent the employee group that includes the | 999 |
member, provided that the member has been nominated by a petition | 1000 |
that is signed by at least five hundred members of the employee | 1001 |
group to be
represented | 1002 |
including not less than twenty such signers from each of at least | 1003 |
ten counties of the state, and certified under section 111.30 of | 1004 |
the Revised Code. The name of any member so nominated shall be | 1005 |
placed upon the ballot by the board as a regular candidate. Names | 1006 |
of other eligible candidates may, at any election, be substituted | 1007 |
for the regular candidates by writing such names upon the ballots. | 1008 |
The candidate who receives the highest number of votes for a | 1009 |
particular employee member position on the board shall be elected | 1010 |
to that office on certification of the election results under | 1011 |
section 111.30 of the Revised Code. | 1012 |
(D) All elections for the retirant member of the public | 1013 |
employees retirement board shall be held under the direction of | 1014 |
the board in accordance with rules adopted under section 111.30 of | 1015 |
the Revised Code. Any former member of the public employees | 1016 |
retirement system who is described in division (E) of section | 1017 |
145.04 of the Revised Code is eligible for election as the | 1018 |
retirant member of the board to represent recipients of age and | 1019 |
service retirement, a disability benefit, or benefits paid under a | 1020 |
PERS defined contribution plan, provided that such person has been | 1021 |
nominated by a petition that is signed by any combination of at | 1022 |
least two hundred fifty eligible, former members of
the system
| 1023 |
1024 | |
Code. To be eligible to sign the petition, a former member of the | 1025 |
system must be a recipient of age and service retirement, a | 1026 |
disability benefit, or benefits paid under a PERS defined | 1027 |
contribution
plan | 1028 |
1029 | |
signatures of at least ten such recipients from each of at least | 1030 |
five counties wherein recipients of benefits from the system | 1031 |
reside. | 1032 |
The name of any person nominated in this manner shall be | 1033 |
placed upon the ballot by the board as a regular candidate. Names | 1034 |
of other eligible candidates may, at any election for the retirant | 1035 |
member of the board, be substituted for the regular candidates by | 1036 |
writing the names of such persons upon the ballot. The candidate | 1037 |
who receives the highest number of votes for any term as the | 1038 |
retirant member of the board shall be elected to office on | 1039 |
certification of the election results under section 111.30 of the | 1040 |
Revised Code. | 1041 |
Sec. 145.051. If a person elected to serve on the public | 1042 |
employees retirement board is unable to assume office at the | 1043 |
January meeting of the board following the person's election, a | 1044 |
special election shall be held in accordance with the provisions | 1045 |
of section 145.05 of the Revised Code within three months of the | 1046 |
January meeting. On certification of the elections results under | 1047 |
section 111.30 of the Revised Code, the newly elected person shall | 1048 |
assume office at the meeting of the board immediately following | 1049 |
the special election. | 1050 |
| 1051 |
145.05 of the Revised Code, the public employees retirement board | 1052 |
is not required to hold an election, including a special election | 1053 |
under
section | 1054 |
on the board as an employee member or retirant member if only one | 1055 |
candidate has been nominated for the position by petition in | 1056 |
accordance with section 145.05 of the Revised Code. The candidate | 1057 |
shall take office as if elected. The term of office shall be four | 1058 |
years beginning on the first day of January following the date the | 1059 |
candidate was nominated. | 1060 |
Sec. 145.053. (A) As used in this section: | 1061 |
(1) "Campaign committee" means a candidate or a combination | 1062 |
of two or more persons authorized by a candidate to receive | 1063 |
contributions and in-kind contributions and make expenditures on | 1064 |
behalf of the candidate. | 1065 |
(2) "Candidate" means an individual who has been nominated | 1066 |
pursuant to division (C) or (D) of section 145.05 of the Revised | 1067 |
Code for election to the public employees retirement board. | 1068 |
(3) "Contribution" means a loan, gift, deposit, forgiveness | 1069 |
of indebtedness, donation, advance, payment, transfer of funds or | 1070 |
transfer of anything of value including a transfer of funds from | 1071 |
an inter vivos or testamentary trust or decedent's estate, and the | 1072 |
payment by any person other than the person to whom the services | 1073 |
are rendered for the personal services of another person, which | 1074 |
contribution is made, received, or used for the purpose of | 1075 |
influencing the results of an election to the public employees | 1076 |
retirement board under section 145.05 of the Revised Code, | 1077 |
including a special election provided for by section 145.051 of | 1078 |
the Revised Code. "Contribution" does not include: | 1079 |
(a) Services provided without compensation by individuals | 1080 |
volunteering a portion or all of their time on behalf of a person; | 1081 |
(b) Ordinary home hospitality; | 1082 |
(c) The personal expenses of a volunteer paid for by that | 1083 |
volunteer campaign worker. | 1084 |
(4) "Election day" means the following, as appropriate to the | 1085 |
situation: | 1086 |
(a) The first Monday in October of a year for which section | 1087 |
145.05 of the Revised Code specifies that an election for a member | 1088 |
of the public employees retirement board be held; | 1089 |
(b) If, pursuant to section 145.052 of the Revised Code, no | 1090 |
election is held, the first Monday in October of a year that the | 1091 |
election would have been held if not for section 145.052 of the | 1092 |
Revised Code; | 1093 |
(c) If the election is a special election provided for by | 1094 |
section 145.051 of the Revised Code, a day that the board shall | 1095 |
specify that is consistent with requirements for a special | 1096 |
election established by section 145.051 of the Revised Code. | 1097 |
(5) "Expenditure" means the disbursement or use of a | 1098 |
contribution for the purpose of influencing the results of an | 1099 |
election to the public employees retirement board under section | 1100 |
145.05 of the Revised Code, including a special election provided | 1101 |
for by section 145.051 of the Revised Code. | 1102 |
(6) "Independent expenditure" has the same meaning as in | 1103 |
section 3517.01 of the Revised Code. | 1104 |
(7) "In-kind contribution" means anything of value other than | 1105 |
money that is used to influence the results of an election to the | 1106 |
public employees retirement board under section 145.05 of the | 1107 |
Revised Code, including a special election provided for by section | 1108 |
145.051 of the Revised Code, or is transferred to or used in | 1109 |
support of or in opposition to a candidate and that is made with | 1110 |
the consent of, in coordination, cooperation, or consultation | 1111 |
with, or at the request or suggestion of the benefited candidate. | 1112 |
The financing of the dissemination, distribution, or | 1113 |
republication, in whole or part, of any broadcast or of any | 1114 |
written, graphic, or other form of campaign materials prepared by | 1115 |
the candidate, the candidate's campaign committee, or their | 1116 |
authorized agents is an in-kind contribution to the candidate and | 1117 |
an expenditure by the candidate. | 1118 |
(8) "Personal expenses" includes ordinary expenses for | 1119 |
accommodations, clothing, food, personal motor vehicle or | 1120 |
airplane, and home telephone. | 1121 |
(B) Each candidate who, or whose campaign committee, receives | 1122 |
a contribution or in-kind contribution or makes an expenditure in | 1123 |
connection with the candidate's efforts to be elected to the | 1124 |
public employees retirement board shall file with the secretary of | 1125 |
state two complete, accurate, and itemized statements setting | 1126 |
forth in detail the contributions, in-kind contributions, and | 1127 |
expenditures. The statements shall be filed regardless of whether | 1128 |
the election is a regular election or, pursuant to section 145.051 | 1129 |
of the Revised Code, a special election. The statements shall also | 1130 |
be filed regardless of whether, pursuant to section 145.052 of the | 1131 |
Revised Code, no election is held. The statements shall be made on | 1132 |
a form prescribed under section 111.30 of the Revised Code. | 1133 |
The first statement shall be filed not later than four p.m. | 1134 |
on the day that is twelve days before election day. The second | 1135 |
statement shall be filed not sooner than the day that is eight | 1136 |
days after election day and not later than thirty-eight days after | 1137 |
election day. The first statement shall reflect contributions and | 1138 |
in-kind contributions received and expenditures made to the close | 1139 |
of business on the twentieth day before election day. The second | 1140 |
statement shall reflect contributions and in-kind contributions | 1141 |
received and expenditures made during the period beginning on the | 1142 |
nineteenth day before election day and ending on the close of | 1143 |
business on the seventh day after election day. | 1144 |
(C) Each individual, partnership, or other entity that makes | 1145 |
an expenditure in connection with the candidate's efforts to be | 1146 |
elected to the public employees retirement board shall file with | 1147 |
the secretary of state two complete, accurate, and itemized | 1148 |
statements setting forth in detail the expenditures. The | 1149 |
statements shall be filed regardless of whether the election is a | 1150 |
regular election or, pursuant to section 145.051 of the Revised | 1151 |
Code, a special election. The statements also shall be filed | 1152 |
regardless of whether, pursuant to section 145.052 of the Revised | 1153 |
Code, no election is held. The statements shall be made on a form | 1154 |
prescribed under section 111.30 of the Revised Code. | 1155 |
The first statement shall be filed not later than four p.m. | 1156 |
on the day that is twelve days before election day. The second | 1157 |
statement shall be filed not sooner than the day that is eight | 1158 |
days after election day and not later than thirty-eight days after | 1159 |
election day. The first statement shall reflect expenditures made | 1160 |
to the close of business on the twentieth day before election day. | 1161 |
The second statement shall reflect expenditures made during the | 1162 |
period beginning on the nineteenth day before election day and | 1163 |
ending on the close of business on the seventh day after election | 1164 |
day. | 1165 |
Sec. 145.054. (A) No person shall knowingly fail to file a | 1166 |
complete and accurate statement in accordance with section 145.053 | 1167 |
of the Revised Code. | 1168 |
(B) No person, during the course of a person seeking | 1169 |
nomination for, or during any campaign for, election to the public | 1170 |
employees retirement board, shall knowingly and with intent to | 1171 |
affect the nomination or the outcome of the campaign do any of the | 1172 |
following by means of campaign materials, an advertisement on | 1173 |
radio or television or in a newspaper or periodical, a public | 1174 |
speech, press release, or otherwise: | 1175 |
(1) With regard to a candidate, identify the candidate in a | 1176 |
manner that implies that the candidate is a member of the board or | 1177 |
use the term "re-elect" when the candidate is not currently a | 1178 |
member of the board; | 1179 |
(2) Make a false statement concerning the formal schooling or | 1180 |
training completed or attempted by a candidate; a degree, diploma, | 1181 |
certificate, scholarship, grant, award, prize, or honor received, | 1182 |
earned, or held by a candidate; or the period of time during which | 1183 |
a candidate attended any school, college, community technical | 1184 |
school, or institution; | 1185 |
(3) Make a false statement concerning the professional, | 1186 |
occupational, or vocational licenses held by a candidate, or | 1187 |
concerning any position the candidate held for which the candidate | 1188 |
received a salary or wages; | 1189 |
(4) Make a false statement that a candidate or public | 1190 |
official has been indicted or convicted of a theft offense, | 1191 |
extortion, or other crime involving financial corruption or moral | 1192 |
turpitude; | 1193 |
(5) Make a statement that a candidate has been indicted for | 1194 |
any crime or has been the subject of a finding by the Ohio | 1195 |
elections commission without disclosing the outcome of any legal | 1196 |
proceedings resulting from the indictment or finding; | 1197 |
(6) Make a false statement that a candidate or official has a | 1198 |
record of treatment or confinement for mental disorder; | 1199 |
(7) Make a false statement that a candidate or official has | 1200 |
been subjected to military discipline for criminal misconduct or | 1201 |
dishonorably discharged from the armed services; | 1202 |
(8) Falsely identify the source of a statement, issue | 1203 |
statements under the name of another person without authorization, | 1204 |
or falsely state the endorsement of or opposition to a candidate | 1205 |
by a person or publication; | 1206 |
(9) Make a false statement concerning the voting record of a | 1207 |
candidate or public official; | 1208 |
(10) Post, publish, circulate, distribute, or otherwise | 1209 |
disseminate a false statement concerning a candidate, either | 1210 |
knowing the same to be false or with reckless disregard of whether | 1211 |
it was false or not, if the statement is designed to promote the | 1212 |
election, nomination, or defeat of the candidate. | 1213 |
Sec. 145.055. The secretary of state, or any person acting | 1214 |
on personal knowledge and subject to the penalties of perjury, may | 1215 |
file a complaint with the Ohio elections commission alleging a | 1216 |
violation of section 145.054 of the Revised Code. The complaint | 1217 |
shall be made on a form prescribed and provided by the commission. | 1218 |
On receipt of a complaint under this section, the commission | 1219 |
shall hold a hearing open to the public to determine whether the | 1220 |
violation alleged in the complaint has occurred. The commission | 1221 |
may administer oaths and issue subpoenas to any person in the | 1222 |
state compelling the attendance of witnesses and the production of | 1223 |
relevant papers, books, accounts, and reports. On the refusal of | 1224 |
any person to obey a subpoena or to be sworn or to answer as a | 1225 |
witness, the commission may apply to the court of common pleas of | 1226 |
Franklin county under section 2705.03 of the Revised Code. The | 1227 |
court shall hold contempt proceedings in accordance with Chapter | 1228 |
2705. of the Revised Code. | 1229 |
The commission shall provide the person accused of the | 1230 |
violation at least seven days prior notice of the time, date, and | 1231 |
place of the hearing. The accused may be represented by an | 1232 |
attorney and shall have an opportunity to present evidence, call | 1233 |
witnesses, and cross-examine witnesses. | 1234 |
At the hearing, the commission shall determine whether the | 1235 |
violation alleged in the complaint has occurred. If the commission | 1236 |
determines that a violation of division (A) of section 145.054 of | 1237 |
the Revised Code has occurred, the commission shall either impose | 1238 |
a fine under section 145.99 of the Revised Code or enter a finding | 1239 |
that good cause has been shown not to impose the fine. If the | 1240 |
commission determines that a violation of division (B) of section | 1241 |
145.054 of the Revised Code has occurred, the commission shall | 1242 |
impose the fine described in section 145.99 of the Revised Code, | 1243 |
refer the matter to the appropriate prosecutor, or enter a finding | 1244 |
that good cause has been shown not to impose a fine or refer the | 1245 |
matter to a prosecutor. | 1246 |
Sec. 145.057. An employee member or retirant member of the | 1247 |
public employees retirement board who is charged with committing a | 1248 |
felony, a theft offense as defined in section 2913.01 of the | 1249 |
Revised Code, or a violation of section 102.02, 102.03, 102.04, | 1250 |
2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or | 1251 |
2921.44 of the Revised Code shall be suspended from participation | 1252 |
on the board for the period during which the charges are pending. | 1253 |
If the charges are dismissed, the member is found not guilty, or | 1254 |
the charges are otherwise resolved in a manner not resulting in | 1255 |
the member being convicted of or pleading guilty to an offense of | 1256 |
that nature, the suspension shall end, and the member may | 1257 |
participate on the board. If the member pleads guilty to or is | 1258 |
convicted of the offense, the position of the member on the board | 1259 |
shall be deemed vacant. A person who has pleaded guilty to or been | 1260 |
convicted of an offense of that nature is ineligible for election | 1261 |
to the office of employee member or retirant member of the public | 1262 |
employees retirement board. | 1263 |
The Ohio retirement study council may hold a hearing to | 1264 |
determine whether to remove an employee member or retirant member | 1265 |
of the public employees retirement board who has been suspended | 1266 |
pursuant to this section. If it decides to hold a hearing, the | 1267 |
council shall provide the suspended board member at least seven | 1268 |
days prior notice of the time, date, and place of the hearing. The | 1269 |
suspended board member may be represented by an attorney. At the | 1270 |
hearing the suspended board member, or the suspended board | 1271 |
member's attorney, shall have an opportunity to present evidence, | 1272 |
call witnesses, and cross-examine witnesses. The hearing shall be | 1273 |
open to the public. At the conclusion of the hearing, if the | 1274 |
voting members of the council unanimously vote to remove the | 1275 |
suspended board member, the suspended board member shall be | 1276 |
removed from the board, and the position of the member shall be | 1277 |
deemed vacant. | 1278 |
Sec. 145.06. (A) If a vacancy occurs in the term of any | 1279 |
employee member of the public employees retirement board, the | 1280 |
remaining members of the board shall elect | 1281 |
member from the employee group lacking representation because of | 1282 |
the
vacancy | 1283 |
election results under section 111.30 of the Revised Code, the | 1284 |
successor employee member shall hold office until the next board | 1285 |
election that occurs not less than ninety days after the successor | 1286 |
employee member's election. | 1287 |
Any employee member of the board who fails to attend the | 1288 |
meetings of the board for three months or longer, without valid | 1289 |
excuse, shall be considered as having resigned, and the board | 1290 |
shall declare the employee member's office vacated as of the date | 1291 |
of the adoption of a proper resolution. | 1292 |
(B) If a vacancy occurs during the term of office of the | 1293 |
retirant member of the board, the remaining members of the board | 1294 |
shall elect a successor retirant member who, on certification of | 1295 |
the election results under section 111.30 of the Revised Code, | 1296 |
shall hold office for the remainder of the predecessor retirant | 1297 |
member's term. The successor retirant member shall be a former | 1298 |
member of the public employees retirement system who is eligible | 1299 |
for election under section 145.04 of the Revised Code as the | 1300 |
retirant member of the board. | 1301 |
If a retirant member of the board fails to attend the | 1302 |
meetings of the board for three months or longer, without valid | 1303 |
excuse, the retirant member shall be considered as having | 1304 |
resigned, and the board shall declare the member's office vacated | 1305 |
as of the date of the adoption of a proper resolution. | 1306 |
If as a result of changed circumstances the retirant member | 1307 |
would no longer qualify for membership on the board as the | 1308 |
retirant member, the retirant member's office shall be considered | 1309 |
vacant, and a successor retirant member shall be chosen in the | 1310 |
manner specified in this division. | 1311 |
(C) | 1312 |
1313 | |
1314 | |
1315 | |
1316 | |
1317 | |
1318 | |
fill a vacancy on the board shall be conducted under the | 1319 |
supervision of the secretary of state pursuant to section 111.30 | 1320 |
of the Revised Code. | 1321 |
Sec. 145.09. The public employees retirement board shall | 1322 |
elect from its membership a chairperson, and shall appoint an | 1323 |
executive director who shall serve as secretary to the board, an | 1324 |
actuary, and other employees as necessary for the transaction of | 1325 |
the business of the public employees retirement system. The | 1326 |
compensation of all persons so appointed shall be fixed by the | 1327 |
board. | 1328 |
Effective ninety days after the effective date of this | 1329 |
amendment, the board may not employ a state retirement system | 1330 |
investment officer, as defined in section 1707.01 of the Revised | 1331 |
Code, who does not hold a valid state retirement system investment | 1332 |
officer license issued by the division of securities in the | 1333 |
department of commerce. | 1334 |
Every expense voucher of an employee, officer, or board | 1335 |
member of the public employees retirement system shall itemize all | 1336 |
purchases and expenditures. | 1337 |
The board shall perform other functions as required for the | 1338 |
proper execution of this chapter, and may adopt rules in | 1339 |
accordance with section 111.15 of the Revised Code for the proper | 1340 |
administration and management of this chapter. | 1341 |
The board may take all appropriate action to avoid payment by | 1342 |
the system or its members of federal or state income taxes on | 1343 |
contributions to the system or amounts earned on such | 1344 |
contributions. | 1345 |
Notice of proposed rules shall be given to interested parties | 1346 |
and rules adopted by the board shall be published and otherwise | 1347 |
made available. When it files a rule with the joint committee on | 1348 |
agency rule review pursuant to section 111.15 of the Revised Code, | 1349 |
the board shall submit to the Ohio retirement study council a copy | 1350 |
of the full text of the rule, and if applicable, a copy of the | 1351 |
rule summary and fiscal analysis required by division (B) of | 1352 |
section 127.18 of the Revised Code. | 1353 |
The board may sue and be sued, plead and be impleaded, | 1354 |
contract and be contracted with. All of its business shall be | 1355 |
transacted, all of its funds invested, all warrants for money | 1356 |
drawn and payments made, and all of its cash and securities and | 1357 |
other property shall be held in the name of the board, or in the | 1358 |
name of its nominee, provided that nominees are authorized by | 1359 |
retirement board resolution for the purpose of facilitating the | 1360 |
ownership and transfer of investments. | 1361 |
If the Ohio retirement study council establishes a uniform | 1362 |
format for any report the board is required to submit to the | 1363 |
council, the board shall submit the report in that format. | 1364 |
Sec. 145.092. The public employees retirement board shall do | 1365 |
all of the following: | 1366 |
(A) In consultation with the Ohio ethics commission, review | 1367 |
any existing policy regarding the travel and payment of travel | 1368 |
expenses of members and employees of the public employees | 1369 |
retirement board and adopt rules in accordance with section 145.09 | 1370 |
of the Revised Code establishing a new or revised policy regarding | 1371 |
travel and payment of travel expenses; | 1372 |
(B) If the board intends to award a bonus to any employee of | 1373 |
the board, adopt rules in accordance with section 145.09 of the | 1374 |
Revised Code establishing a policy regarding employee bonuses; | 1375 |
(C) Provide copies of the rules adopted under divisions (A) | 1376 |
and (B) of this section to each member of the Ohio retirement | 1377 |
study council; | 1378 |
(D) Submit to the Ohio retirement study council a proposed | 1379 |
operating budget, including a travel budget, for the next | 1380 |
immediate fiscal year and adopt that budget not earlier than sixty | 1381 |
days after it is submitted to the council. | 1382 |
Sec. 145.093. The public employees retirement board shall, in | 1383 |
consultation with the Ohio ethics commission, develop an ethics | 1384 |
policy. The board shall submit this policy to the Ohio retirement | 1385 |
study council for approval. | 1386 |
The council shall review the policy in consultation with the | 1387 |
Ohio ethics commission and, if the council determines that the | 1388 |
policy is adequate, approve the policy. If the council determines | 1389 |
that the policy is inadequate, it shall specify the revisions to | 1390 |
be made and the board shall submit a revised policy. If the | 1391 |
council approves the revised policy, the board shall adopt it. If | 1392 |
not, the board shall make any further revisions required by the | 1393 |
council and adopt the policy. | 1394 |
The board periodically shall provide ethics training to | 1395 |
members and employees of the board. The training shall include | 1396 |
training regarding the requirements and prohibitions of Chapter | 1397 |
102. of the Revised Code and sections 2921.42 and 2921.43 of the | 1398 |
Revised Code and any other training the board considers | 1399 |
appropriate. | 1400 |
The board shall establish a procedure to ensure that each | 1401 |
employee of the board is informed of the procedure for filing a | 1402 |
complaint alleging violation of Chapter 102. of the Revised Code | 1403 |
or section 2921.42 or 2921.43 of the Revised Code with the Ohio | 1404 |
ethics commission or the appropriate prosecuting attorney. | 1405 |
Sec. 145.094. (A) The public employees retirement board | 1406 |
shall designate a person who is a licensed state retirement system | 1407 |
investment officer to be the chief investment officer for the | 1408 |
public employees retirement system. The board shall notify the | 1409 |
division of securities of the department of commerce in writing of | 1410 |
its designation and of any change in its designation within ten | 1411 |
calendar days of the designation or change. | 1412 |
(B) The chief investment officer shall reasonably supervise | 1413 |
the licensed state retirement system investment officers and other | 1414 |
persons employed by the public employees retirement system with a | 1415 |
view toward preventing violations of Chapter 1707. of the Revised | 1416 |
Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and | 1417 |
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. | 1418 |
and following, and the "Securities Exchange Act of 1934," 48 Stat. | 1419 |
881, 15 U.S.C. 78a, and following, and the rules and regulations | 1420 |
promulgated under those statutes. This duty of reasonable | 1421 |
supervision shall include the adoption, implementation, and | 1422 |
enforcement of written policies and procedures reasonably designed | 1423 |
to prevent persons employed by the public employees retirement | 1424 |
system from misusing material, nonpublic information in violation | 1425 |
of those laws, rules, and regulations. | 1426 |
For purposes of this division, no chief investment officer | 1427 |
shall be considered to have failed to satisfy the officer's duty | 1428 |
of reasonable supervision if the officer has done all of the | 1429 |
following: | 1430 |
(1) Adopted and implemented written procedures, and a system | 1431 |
for applying the procedures, that would reasonably be expected to | 1432 |
prevent and detect, insofar as practicable, any violation by its | 1433 |
licensed investment officers and other persons employed by the | 1434 |
public employees retirement system; | 1435 |
(2) Reasonably discharged the duties and obligations | 1436 |
incumbent on the chief investment officer by reason of the | 1437 |
established procedures and the system for applying the procedures | 1438 |
when the officer had no reasonable cause to believe that there was | 1439 |
a failure to comply with the procedures and systems; | 1440 |
(3) Reviewed, at least annually, the adequacy of the policies | 1441 |
and procedures established pursuant to this section and the | 1442 |
effectiveness of their implementation. | 1443 |
(C) The chief investment officer shall ensure that securities | 1444 |
transactions are executed in such a manner that the state | 1445 |
retirement system's total costs or proceeds in each transaction | 1446 |
are the most favorable under the circumstances. | 1447 |
For purposes of this division, no chief investment officer | 1448 |
shall be considered to have failed to satisfy the officer's duty | 1449 |
of best execution if the officer has done both of the following: | 1450 |
(1) Adopted and implemented a written policy that outlines | 1451 |
the criteria used to select broker-dealers that execute securities | 1452 |
transactions on behalf of the public employees retirement system, | 1453 |
which criteria shall include all of the following: | 1454 |
(a) Commissions charged by the broker-dealer, both in the | 1455 |
aggregate and on a per share basis; | 1456 |
(b) The execution speed and trade settlement capabilities of | 1457 |
the broker-dealer; | 1458 |
(c) The responsiveness, reliability and integrity of the | 1459 |
broker-dealer; | 1460 |
(d) The nature and value of research provided by the | 1461 |
broker-dealer; | 1462 |
(e) Any special capabilities of the broker-dealer. | 1463 |
(2) Reviewed, at least annually, the performance of | 1464 |
broker-dealers that execute securities transactions on behalf of | 1465 |
the public employees retirement system. | 1466 |
Sec. 145.114. The attorney general may maintain a civil | 1467 |
action under section 109.98 of the Revised Code against a member | 1468 |
of the public employees retirement board for harm resulting from a | 1469 |
breach of the member's fiduciary duty. | 1470 |
Sec. 145.27. (A)(1) As used in this division, "personal | 1471 |
history record" means information maintained by the public | 1472 |
employees retirement board on an individual who is a member, | 1473 |
former member, contributor, former contributor, retirant, or | 1474 |
beneficiary that includes the address, telephone number, social | 1475 |
security number, record of contributions, correspondence with the | 1476 |
public employees retirement system, or other information the board | 1477 |
determines to be confidential. | 1478 |
(2) The records of the board shall be open to public | 1479 |
inspection, except that the following shall be excluded, except | 1480 |
with the written authorization of the individual concerned: | 1481 |
(a) The individual's statement of previous service and other | 1482 |
information as provided for in section 145.16 of the Revised Code; | 1483 |
(b) The amount of a monthly allowance or benefit paid to the | 1484 |
individual; | 1485 |
(c) The individual's personal history record. | 1486 |
(B) All medical reports and recommendations required by this | 1487 |
chapter are privileged, except that copies of such medical reports | 1488 |
or recommendations shall be made available to the personal | 1489 |
physician, attorney, or authorized agent of the individual | 1490 |
concerned upon written release from the individual or the | 1491 |
individual's agent, or when necessary for the proper | 1492 |
administration of the fund, to the board assigned physician. | 1493 |
(C) Any person who is a member or contributor of the system | 1494 |
shall be furnished with a statement of the amount to the credit of | 1495 |
the individual's account upon written request. The board is not | 1496 |
required to answer more than one such request of a person in any | 1497 |
one year. The board may issue annual statements of accounts to | 1498 |
members and contributors. | 1499 |
(D) Notwithstanding the exceptions to public inspection in | 1500 |
division (A)(2) of this section, the board may furnish the | 1501 |
following information: | 1502 |
(1) If a member, former member, contributor, former | 1503 |
contributor, or retirant is subject to an order issued under | 1504 |
section 2907.15 of the Revised Code or is convicted of or pleads | 1505 |
guilty to a violation of section 2921.41 of the Revised Code, on | 1506 |
written request of a prosecutor as defined in section 2935.01 of | 1507 |
the Revised Code, the board shall furnish to the prosecutor the | 1508 |
information requested from the individual's personal history | 1509 |
record. | 1510 |
(2) Pursuant to a court or administrative order issued | 1511 |
pursuant to Chapter 3119., 3121., 3123., or 3125. of the Revised | 1512 |
Code, the board shall furnish to a court or child support | 1513 |
enforcement agency the information required under that section. | 1514 |
(3) At the written request of any person, the board shall | 1515 |
provide to the person a list of the names and addresses of | 1516 |
members, former members, contributors, former contributors, | 1517 |
retirants, or beneficiaries. The costs of compiling, copying, and | 1518 |
mailing the list shall be paid by such person. | 1519 |
(4) Within fourteen days after receiving from the director of | 1520 |
job and family services a list of the names and social security | 1521 |
numbers of recipients of public assistance pursuant to section | 1522 |
5101.181 of the Revised Code, the board shall inform the auditor | 1523 |
of state of the name, current or most recent employer address, and | 1524 |
social security number of each member whose name and social | 1525 |
security number are the same as that of a person whose name or | 1526 |
social security number was submitted by the director. The board | 1527 |
and its employees shall, except for purposes of furnishing the | 1528 |
auditor of state with information required by this section, | 1529 |
preserve the confidentiality of recipients of public assistance in | 1530 |
compliance with division (A) of section 5101.181 of the Revised | 1531 |
Code. | 1532 |
(5) The system shall comply with orders issued under section | 1533 |
3105.87 of the Revised Code. | 1534 |
On the written request of an alternate payee, as defined in | 1535 |
section 3105.80 of the Revised Code, the system shall furnish to | 1536 |
the alternate payee information on the amount and status of any | 1537 |
amounts payable to the alternate payee under an order issued under | 1538 |
section 3105.171 or 3105.65 of the Revised Code. | 1539 |
(6) At the request of any person, the board shall make | 1540 |
available to the person copies of all documents, including | 1541 |
resumes, in the board's possession regarding filling a vacancy of | 1542 |
an employee member or retirant member of the board. The person who | 1543 |
made the request shall pay the cost of compiling, copying, and | 1544 |
mailing the documents. The information described in this division | 1545 |
is a public record. | 1546 |
(7) The board shall furnish the personal history records kept | 1547 |
by the board to the secretary of state for the purposes of | 1548 |
certifying an election pursuant to section 111.30 of the Revised | 1549 |
Code. | 1550 |
(E) A statement that contains information obtained from the | 1551 |
system's records that is signed by the executive director or an | 1552 |
officer of the system and to which the system's official seal is | 1553 |
affixed, or copies of the system's records to which the signature | 1554 |
and seal are attached, shall be received as true copies of the | 1555 |
system's records in any court or before any officer of this state. | 1556 |
Sec. 145.99. (A) Whoever violates division (A) of section | 1557 |
145.054 of the Revised Code shall be fined not more than one | 1558 |
hundred dollars for each day of the violation. | 1559 |
(B) Whoever violates division (B) of section 145.054 of the | 1560 |
Revised Code shall be imprisoned for not more than six months or | 1561 |
fined not more than five thousand dollars, or both. | 1562 |
(C) Fines imposed by the Ohio elections commission under this | 1563 |
section shall be paid into the Ohio elections commission fund | 1564 |
created under section 3513.10 of the Revised Code. | 1565 |
Sec. 171.01. | 1566 |
retirement systems" means the public employees retirement system, | 1567 |
Ohio police and fire pension fund, state teachers retirement | 1568 |
system, school employees retirement system, and state highway | 1569 |
patrol retirement system. | 1570 |
There is hereby created the Ohio retirement
study council | 1571 |
1572 | |
appointed as follows: | 1573 |
(A) Three members of the senate, appointed by the president | 1574 |
of the senate, not more than two of whom may be members of the | 1575 |
same political party; | 1576 |
(B) Three members of the house of representatives, appointed | 1577 |
by the speaker of the house of representatives, not more than two | 1578 |
of whom may be members of the same political party; | 1579 |
(C) Two members, each of whom shall be a former member of the | 1580 |
general assembly who served at least one term on the council while | 1581 |
a member of the general assembly. One member shall be jointly | 1582 |
appointed by the speaker of the house of representatives and the | 1583 |
president of the senate. The other member shall be jointly | 1584 |
appointed by the minority leaders of the house of representatives | 1585 |
and the senate. The members shall not be members of the same | 1586 |
political party. | 1587 |
The members shall be appointed at the same time as the | 1588 |
members appointed under division (B) of this section and shall | 1589 |
serve until the thirty-first day of December of the following | 1590 |
year. | 1591 |
(D) Three members appointed by the governor, with the advice | 1592 |
and consent of the senate, not more than two of whom shall be | 1593 |
members of the same political party, one of whom shall represent | 1594 |
the state and its employees; one of whom shall represent nonstate | 1595 |
governments and their employees; and one of whom shall represent | 1596 |
educational employers and their employees. Of these three members, | 1597 |
at least one shall be a person with investment expertise. Terms of | 1598 |
the existing members appointed by the governor shall not be | 1599 |
affected. Terms of office of members appointed by the governor | 1600 |
shall be for three years, commencing on the first day of July and | 1601 |
ending on the thirtieth day of June. Each member appointed by the | 1602 |
governor shall hold office from the date of appointment until the | 1603 |
end of the term for which the appointment was made. Any member | 1604 |
appointed by the governor to fill a vacancy occurring prior to the | 1605 |
expiration of the term for which the member's predecessor was | 1606 |
appointed shall hold office for the remainder of such term. | 1607 |
Each member appointed by the governor shall continue in office | 1608 |
1609 | |
1610 | |
1611 | |
is appointed and qualified, notwithstanding the expiration of the | 1612 |
member's term of office. | 1613 |
| 1614 |
director of the public employees retirement system, the executive | 1615 |
director of the state teachers retirement system, the executive | 1616 |
director of the school employees retirement system, the executive | 1617 |
secretary of the Ohio police and fire pension fund, and the | 1618 |
secretary of the state highway patrol retirement board, who shall | 1619 |
be nonvoting members. | 1620 |
A vacancy on the council shall be filled by the person | 1621 |
qualified to make the original appointment for the unexpired term, | 1622 |
in the same manner as the original appointment. | 1623 |
The members of the council who are appointed from the | 1624 |
membership of the senate and the house of representatives shall | 1625 |
serve during their terms as members of the general assembly and | 1626 |
until their successors are appointed and qualified, | 1627 |
notwithstanding the adjournment of the general assembly of which | 1628 |
they are members or the expiration of their terms as members of | 1629 |
such general assembly. | 1630 |
The members of the council who are former members of the | 1631 |
general assembly shall serve until their successors are appointed | 1632 |
and qualified, notwithstanding the adjournment of the general | 1633 |
assembly during which they were appointed or the expiration of | 1634 |
their terms as members of the council. | 1635 |
Sec. 171.02. Meetings of the Ohio retirement study council | 1636 |
shall be called in such manner and at such times as prescribed by | 1637 |
rules adopted by the council. A majority of the council | 1638 |
constitutes a quorum and no action shall be taken by the council | 1639 |
unless approved by at least | 1640 |
shall organize by selecting a chairperson, vice-chairperson, and | 1641 |
such other officers as it deems necessary. The council shall adopt | 1642 |
rules for the conduct of its business and the election of its | 1643 |
officers, and shall establish an office in Columbus. Each member | 1644 |
of the council, before entering upon the member's official duties | 1645 |
shall take and subscribe to an oath of office, to uphold the | 1646 |
constitution and laws of the United States and this state and to | 1647 |
perform the duties of the office honestly, faithfully, and | 1648 |
impartially. Members of the council shall serve without | 1649 |
compensation but shall be reimbursed for actual and necessary | 1650 |
expenses incurred in the performance of their duties. | 1651 |
Sec. 171.03. The Ohio retirement study council may: | 1652 |
(A) Appoint a director to manage and direct the duties of the | 1653 |
staff of the council. The director shall be a person who has had | 1654 |
training and experience in areas related to the duties of the | 1655 |
council. | 1656 |
(B) Appoint such professional, technical, and clerical | 1657 |
employees as are necessary, and employ or hire on a consulting | 1658 |
basis such actuarial, legal, investment, or other technical | 1659 |
services required for the performance of its duties; | 1660 |
(C) Fix the compensation of the director and all other | 1661 |
employees of the council. The employees of the council shall be | 1662 |
members of the public employees retirement system. | 1663 |
(D) Require the public employees retirement board, the state | 1664 |
teachers retirement board, the school employees retirement board, | 1665 |
the state highway patrol retirement system, the Ohio police and | 1666 |
fire pension fund, and any agency or official of this state or its | 1667 |
political subdivisions to provide it with any information | 1668 |
necessary to carry out its duties; | 1669 |
(E) Administer oaths and hold public hearings at such times | 1670 |
and places within the state as may be necessary to accomplish the | 1671 |
purposes and intent of Chapter 171. of the Revised Code; | 1672 |
(F) Establish a uniform format for any report that the boards | 1673 |
of the state retirement systems are required to submit to the | 1674 |
council and regular reporting requirements; | 1675 |
(G) Request that the auditor of state perform or contract for | 1676 |
the performance of a financial or special audit of a state | 1677 |
retirement system. | 1678 |
Sec. 171.04. The Ohio retirement study council shall: | 1679 |
(A) Make an impartial review from time to time of all laws | 1680 |
governing the administration and financing of the pension and | 1681 |
retirement funds under Chapters 145., 146., 742., 3307., 3309., | 1682 |
and 5505. of the Revised Code and recommend to the general | 1683 |
assembly any changes it may find desirable with respect to the | 1684 |
allowances and benefits, sound financing of the cost of benefits, | 1685 |
the prudent investment of funds, and the improvement of the | 1686 |
language, structure, and organization of the laws; | 1687 |
(B) Make an annual report to the governor and to the general | 1688 |
assembly covering its evaluation and recommendations with respect | 1689 |
to the operations of the state retirement systems and their funds; | 1690 |
(C) Study all changes in the retirement laws proposed to the | 1691 |
general assembly and report to the general assembly on their | 1692 |
probable costs, actuarial implications, and desirability as a | 1693 |
matter of public policy; | 1694 |
(D) Review semiannually the policies, objectives, and | 1695 |
criteria adopted under sections 145.11, 742.11, 3307.15, 3309.15, | 1696 |
and 5505.06 of the Revised Code for the operation of the | 1697 |
investment programs of the state retirement systems, including a | 1698 |
review of asset allocation targets and ranges, risk factors, asset | 1699 |
class benchmarks, time horizons, total return objectives, relative | 1700 |
volatility, and performance evaluation guidelines. The council | 1701 |
shall, not later than thirty days after completing a review, | 1702 |
submit to the governor and the general assembly a report | 1703 |
summarizing its findings. | 1704 |
(E) Have prepared by an independent actuary, at least once | 1705 |
every ten years, an actuarial review of the annual actuarial | 1706 |
valuations and quinquennial actuarial investigations prepared | 1707 |
under sections 145.22, 742.14, 3307.20, 3309.21, and 5505.12 of | 1708 |
the Revised Code, including a review of the actuarial assumptions | 1709 |
and methods, the data underlying the valuations and | 1710 |
investigations, and the adequacy of each system's employee and | 1711 |
employer contribution rates to amortize its unfunded actuarial | 1712 |
pension liability, if any, and to support the payment of benefits | 1713 |
authorized by Chapter 145., 742., 3307., 3309., or 5505. of the | 1714 |
Revised Code. The council shall submit to the governor and the | 1715 |
general assembly a report summarizing the review. | 1716 |
(F) Have conducted by an independent auditor at least once | 1717 |
every five years a fiduciary performance audit of each of the | 1718 |
state retirement systems. | 1719 |
All costs associated with an audit conducted pursuant to | 1720 |
division (F) of this section shall be paid by the retirement | 1721 |
system audited. | 1722 |
(G) Review all proposed rules submitted to the council | 1723 |
pursuant to sections 145.09, 742.10, 3307.04, 3309.04, and 5505.04 | 1724 |
of the Revised Code and submit any recommendations to the joint | 1725 |
committee on agency rule review. | 1726 |
Sec. 171.06. The attorney general is the legal adviser to the | 1727 |
Ohio retirement study council. | 1728 |
Sec. 171.50. The boards of the state retirement systems shall | 1729 |
jointly develop a retirement board member education program and | 1730 |
submit the program to the Ohio retirement study council. | 1731 |
The boards shall jointly pay all costs associated with | 1732 |
establishing and conducting the retirement board member education | 1733 |
program. | 1734 |
The retirement board member education program shall consist | 1735 |
of an orientation component for newly elected and appointed | 1736 |
members and a continuing education component for board members who | 1737 |
have served for at least one year. The program shall incorporate | 1738 |
into its curriculum each of the following topics: board member | 1739 |
duties and responsibilities, retirement system member benefits and | 1740 |
health care management, ethics, governance processes and | 1741 |
procedures, actuarial soundness, investments, and any other | 1742 |
subject matter the boards believe is reasonably related to the | 1743 |
duties of a board member. | 1744 |
All program sessions, classes, and other events shall be held | 1745 |
in Ohio. | 1746 |
Sec. 742.03. (A) As used in this section and in sections | 1747 |
742.04 and 742.05 of the Revised Code: | 1748 |
(1) "Police officer" means a member of the fund who is or has | 1749 |
been an employee of a police department and is not a police | 1750 |
retirant. | 1751 |
(2) "Firefighter" means a member of the fund who is or has | 1752 |
been an employee of a fire department and is not a firefighter | 1753 |
retirant. | 1754 |
(3) "Firefighter retirant" means a member of the fund who is | 1755 |
receiving an age and service or disability benefit as a result of | 1756 |
service in a fire department or a surviving spouse of a deceased | 1757 |
member who is receiving a benefit as a result of the deceased | 1758 |
member's service in a fire department. "Firefighter retirant" does | 1759 |
not include a member of the fund who is participating in the | 1760 |
deferred retirement option plan established under section 742.43 | 1761 |
of the Revised Code. | 1762 |
(4) "Police retirant" means a member of the fund who is | 1763 |
receiving an age and service or disability benefit as a result of | 1764 |
service in a police department or a surviving spouse of a deceased | 1765 |
member who is receiving a benefit as a result of the deceased | 1766 |
member's service in a police department. "Police retirant" does | 1767 |
not include a member of the fund who is participating in the | 1768 |
deferred retirement option plan established under section 742.43 | 1769 |
of the Revised Code. | 1770 |
(B) The administration, control, and management of the Ohio | 1771 |
police and fire pension fund, created under section 742.02 of the | 1772 |
Revised Code, is vested in a board of trustees of the Ohio police | 1773 |
and fire pension fund,
which shall consist of | 1774 |
members | 1775 |
(1) The | 1776 |
(2) The auditor of state; | 1777 |
(3) The fiscal officer of a municipal corporation who shall | 1778 |
be appointed by the governor. This member's term shall be for | 1779 |
three years, commencing on the fourth day of June and ending on | 1780 |
the third day of June. The fiscal officer member shall hold office | 1781 |
from the date of appointment until the end of the term for which | 1782 |
appointed. Any fiscal officer member appointed to fill a vacancy | 1783 |
occurring prior to the expiration of the term for which the fiscal | 1784 |
officer member's predecessor was appointed shall hold office for | 1785 |
the remainder of such term. Any fiscal officer member shall | 1786 |
continue in office subsequent to the expiration date of the fiscal | 1787 |
officer member's term until such member's successor takes office, | 1788 |
or until a period of sixty days has elapsed, whichever occurs | 1789 |
first. | 1790 |
(4) The mayor or chief executive officer of a municipal | 1791 |
corporation who shall be appointed by the governor. This member's | 1792 |
term shall be three years, commencing on the fourth day of June | 1793 |
and ending on the third day of June. The initial mayor or chief | 1794 |
executive officer member shall be appointed and take office on the | 1795 |
June 4 that occurs not less than ninety days after the effective | 1796 |
date of this amendment. | 1797 |
Any mayor or chief executive officer member appointed to fill | 1798 |
a vacancy occurring prior to the expiration of the term of the | 1799 |
member's predecessor shall hold office for the remainder of the | 1800 |
predecessor's term. Notwithstanding the expiration of the member's | 1801 |
term, the mayor or chief executive officer member shall hold | 1802 |
office from the date of appointment until the member's successor | 1803 |
takes office or until a period of sixty days has elapsed, | 1804 |
whichever comes first. | 1805 |
(5) The chief of a police department or the chief of a fire | 1806 |
department appointed by the governor. This member's term shall be | 1807 |
three years, commencing on the fourth day of June and ending on | 1808 |
the third day of June. The initial member shall be the chief of a | 1809 |
police department and shall be appointed and take office on the | 1810 |
June 4 that occurs not less than ninety days after the effective | 1811 |
date of this amendment. The next such member shall be the chief of | 1812 |
a fire department. Thereafter, the position shall alternate | 1813 |
between the chief of a police department and the chief of a fire | 1814 |
department. | 1815 |
If a vacancy occurs prior to the expiration of a police or | 1816 |
fire department chief's term, the governor shall appoint a | 1817 |
successor member to hold office for the remainder of the | 1818 |
predecessor member's term. If the predecessor member is the chief | 1819 |
of a police department, the governor shall appoint the chief of a | 1820 |
police department as a successor member. If the predecessor member | 1821 |
is the chief of a fire department, the governor shall appoint the | 1822 |
chief of a fire department as a successor member. | 1823 |
Notwithstanding the expiration of the member's term, each | 1824 |
police or fire department chief member shall hold office from the | 1825 |
date of appointment until the member's successor takes office or | 1826 |
until a period of sixty days has elapsed, whichever comes first. | 1827 |
(6) Four members known as employee members. | 1828 |
Two employee members shall be police officers elected by | 1829 |
police officers. Two employee members shall be firefighters | 1830 |
elected by firefighters. Employee members of the board shall be | 1831 |
elected for terms of four years as provided by section 742.04 of | 1832 |
the Revised Code. | 1833 |
| 1834 |
who shall be a resident of this state elected by the firefighter | 1835 |
retirants. The firefighter retirant member shall be elected for a | 1836 |
term of four years as provided by section 742.04 of the Revised | 1837 |
Code. | 1838 |
| 1839 |
shall be a resident of this state elected by the police retirants. | 1840 |
The police retirant member shall be elected for a term of four | 1841 |
years as provided by section 742.04 of the Revised Code. | 1842 |
(C) No employee member of the board who retires while a | 1843 |
member of the board shall be eligible to become a retirant member | 1844 |
for three years after the date of the member's retirement. | 1845 |
Sec. 742.031. Each newly elected member of the board of | 1846 |
trustees of the Ohio police and fire pension fund and each | 1847 |
individual appointed to fill a vacancy on the board, shall, not | 1848 |
later than ninety days after commencing service as a board member, | 1849 |
complete the orientation program component of the retirement board | 1850 |
member education program established under section 171.50 of the | 1851 |
Revised Code. | 1852 |
Each member of the board who has served a year or longer as a | 1853 |
board member shall, not less than twice each year, attend one or | 1854 |
more programs that are part of the continuing education component | 1855 |
of the retirement board member education program established under | 1856 |
section 171.50 of the Revised Code. | 1857 |
Sec. 742.04. As used in this section, "county" means the | 1858 |
county of residence of an individual who signs a nominating | 1859 |
petition. | 1860 |
Election of the employee members, firefighter retirant | 1861 |
member, and police retirant member of the board of trustees of the | 1862 |
Ohio police and fire pension fund shall be under the supervision | 1863 |
and direction of the board in accordance with rules adopted under | 1864 |
section 111.30 of the Revised Code. | 1865 |
Nominating petitions for candidates for an employee member of | 1866 |
the board elected by police officers shall be signed by at least | 1867 |
one hundred police officers, with at least twenty signers from | 1868 |
each of at least five counties of the state, and certified under | 1869 |
section 111.30 of the Revised Code. | 1870 |
Nominating petitions for candidates for an employee member of | 1871 |
the board elected by firefighters shall be signed by at least one | 1872 |
hundred firefighters, with at least twenty signers from each of at | 1873 |
least five counties of the state, and certified under section | 1874 |
111.30 of the Revised Code. | 1875 |
Nominating petitions for candidates for an employee member of | 1876 |
the board shall be filed in the office of the board not later than | 1877 |
four p.m. on the first Monday in April preceding the date of the | 1878 |
expiration of the term of the employee member of the board whose | 1879 |
successor is to be elected. | 1880 |
| 1881 |
1882 |
The board shall cause ballots to be prepared for the election | 1883 |
of employee members of the board which shall contain the names of | 1884 |
all candidates for whom | 1885 |
been filed with the board. | 1886 |
A police officer or firefighter is eligible to vote in an | 1887 |
election if the police officer or firefighter is a member of the | 1888 |
fund on the first Monday in March preceding the date of the | 1889 |
expiration of the term of the employee member of the board whose | 1890 |
successor is to be elected. The board shall determine whether a | 1891 |
member of the fund is eligible to vote at an election and its | 1892 |
decision shall be final. | 1893 |
On or before the first Monday in May preceding the date of | 1894 |
the expiration of the term of the employee member of the board | 1895 |
whose successor is to be elected, the board shall cause ballots to | 1896 |
be sent to each member of the fund who is eligible to vote at such | 1897 |
election to the address of such member as shown on the records of | 1898 |
the board. | 1899 |
Ballots shall be returned to the board not later than the | 1900 |
third Tuesday in May following the date that the ballots were | 1901 |
mailed to the members of the fund eligible to vote at such | 1902 |
election. | 1903 |
| 1904 |
1905 | |
111.30 of the Revised Code, the person receiving the highest | 1906 |
number of votes shall be elected as an employee member of the | 1907 |
board for a term of four years beginning on the first Monday in | 1908 |
June following such election. | 1909 |
Nominating petitions for candidates for the police retirant | 1910 |
member of the board shall be signed by at least fifty police | 1911 |
retirants, with at least ten signers from at least five counties | 1912 |
of the state, and certified under section 111.30 of the Revised | 1913 |
Code. | 1914 |
Nominating petitions for candidates for the firefighter | 1915 |
retirant member of the board shall be signed by at least fifty | 1916 |
firefighter retirants, with at least ten signers from at least | 1917 |
five counties of the state, and certified under section 111.30 of | 1918 |
the Revised Code. | 1919 |
Nominating petitions for candidates for the retirant members | 1920 |
of the board shall be filed in the office of the board not later | 1921 |
than four p.m. on the first Monday in April preceding the date of | 1922 |
the expiration of the term of the retirant member of the board | 1923 |
whose successor is to be elected. | 1924 |
| 1925 |
1926 |
The board shall cause ballots to be prepared for the election | 1927 |
of these board members which shall contain the names of all | 1928 |
candidates for whom | 1929 |
been filed with the board. | 1930 |
A retirant is eligible to vote in an election if the retirant | 1931 |
is a police retirant or firefighter retirant on the first Monday | 1932 |
in April preceding the date of the expiration of the term of the | 1933 |
retirant member of the board whose successor is to be elected. The | 1934 |
board shall determine whether a police retirant or firefighter | 1935 |
retirant is eligible to vote at an election and its decision shall | 1936 |
be final. | 1937 |
On or before the first Monday in May preceding the date of | 1938 |
the expiration of the term of a retirant member of the board whose | 1939 |
successor is to be elected, the board shall cause ballots to be | 1940 |
sent to each person who is eligible to vote in the election to the | 1941 |
address of the person as shown on the records of the board. | 1942 |
Ballots shall be returned to the board not later than the | 1943 |
third Tuesday in May following the date that the ballots were | 1944 |
mailed to the persons eligible to vote in the election. | 1945 |
| 1946 |
1947 | |
111.30 of the Revised Code, the person receiving the highest | 1948 |
number of votes shall be elected as the police retirant member or | 1949 |
the firefighter retirant member of the board for a term of four | 1950 |
years beginning on the first Monday in June following the | 1951 |
election. | 1952 |
Sec. 742.042. (A) As used in this section: | 1953 |
(1) "Campaign committee" means a candidate or a combination | 1954 |
of two or more persons authorized by a candidate to receive | 1955 |
contributions and in-kind contributions and make expenditures on | 1956 |
behalf of the candidate. | 1957 |
(2) "Candidate" means an individual who has been nominated | 1958 |
pursuant to section 742.04 of the Revised Code for election to the | 1959 |
board of trustees of the Ohio police and fire pension fund. | 1960 |
(3) "Contribution" means a loan, gift, deposit, forgiveness | 1961 |
of indebtedness, donation, advance, payment, transfer of funds or | 1962 |
transfer of anything of value including a transfer of funds from | 1963 |
an inter vivos or testamentary trust or decedent's estate, and the | 1964 |
payment by any person other than the person to whom the services | 1965 |
are rendered for the personal services of another person, which | 1966 |
contribution is made, received, or used for the purpose of | 1967 |
influencing the results of an election to the board of trustees of | 1968 |
the Ohio police and fire pension fund under section 742.04 of the | 1969 |
Revised Code. "Contribution" does not include: | 1970 |
(a) Services provided without compensation by individuals | 1971 |
volunteering a portion or all of their time on behalf of a person; | 1972 |
(b) Ordinary home hospitality; | 1973 |
(c) The personal expenses of a volunteer paid for by that | 1974 |
volunteer campaign worker. | 1975 |
(4) "Election day" means the following, as appropriate to the | 1976 |
situation: | 1977 |
(a) The third Tuesday in May of a year for which section | 1978 |
742.04 of the Revised Code specifies that an election for a member | 1979 |
of the board of trustees of the Ohio police and fire pension fund | 1980 |
be held; | 1981 |
(b) If, pursuant to section 742.041 of the Revised Code, no | 1982 |
election is held, the third Tuesday in May of a year that the | 1983 |
election would have been held if not for section 742.041 of the | 1984 |
Revised Code. | 1985 |
(5) "Expenditure" means the disbursement or use of a | 1986 |
contribution for the purpose of influencing the results of an | 1987 |
election to the board of trustees of the Ohio police and fire | 1988 |
pension fund under section 742.04 of the Revised Code. | 1989 |
(6) "In-kind contribution" means anything of value other than | 1990 |
money that is used to influence the results of an election to the | 1991 |
board of trustees of the Ohio police and fire pension fund under | 1992 |
section 742.04 of the Revised Code or is transferred to or used in | 1993 |
support of or in opposition to a candidate and that is made with | 1994 |
the consent of, in coordination, cooperation, or consultation | 1995 |
with, or at the request or suggestion of the benefited candidate. | 1996 |
The financing of the dissemination, distribution, or | 1997 |
republication, in whole or part, of any broadcast or of any | 1998 |
written, graphic, or other form of campaign materials prepared by | 1999 |
the candidate, the candidate's campaign committee, or their | 2000 |
authorized agents is an in-kind contribution to the candidate and | 2001 |
an expenditure by the candidate. | 2002 |
(7) "Personal expenses" includes ordinary expenses for | 2003 |
accommodations, clothing, food, personal motor vehicle or | 2004 |
airplane, and home telephone. | 2005 |
(B) Each candidate who, or whose campaign committee, receives | 2006 |
a contribution or in-kind contribution or makes an expenditure in | 2007 |
connection with the candidate's efforts to be elected to the board | 2008 |
of trustees of the Ohio police and fire pension fund shall file | 2009 |
with the secretary of state two complete, accurate, and itemized | 2010 |
statements setting forth in detail the contributions, in-kind | 2011 |
contributions, and expenditures. The statements shall be filed | 2012 |
regardless of whether, pursuant to section 742.041 of the Revised | 2013 |
Code, no election is held. The statements shall be made on a form | 2014 |
prescribed under section 111.30 of the Revised Code. | 2015 |
The first statement shall be filed not later than four p.m. | 2016 |
on the day that is twelve days before election day. The second | 2017 |
statement shall be filed not sooner than the day that is eight | 2018 |
days after election day and not later than thirty-eight days after | 2019 |
election day. The first statement shall reflect contributions and | 2020 |
in-kind contributions received and expenditures made to the close | 2021 |
of business on the twentieth day before election day. The second | 2022 |
statement shall reflect contributions and in-kind contributions | 2023 |
received and expenditures made during the period beginning on the | 2024 |
nineteenth day before election day and ending on the close of | 2025 |
business on the seventh day after election day. | 2026 |
(C) Each individual, partnership, or other entity who makes | 2027 |
an expenditure in connection with the candidate's efforts to be | 2028 |
elected to the board of trustees of the police and fire pension | 2029 |
fund shall file with the secretary of state two complete, | 2030 |
accurate, and itemized statements setting forth in detail the | 2031 |
expenditures. The statements shall be filed regardless of whether, | 2032 |
pursuant to section 742.041 of the Revised Code, no election is | 2033 |
held. The statements shall be made on a form prescribed under | 2034 |
section 111.30 of the Revised Code. | 2035 |
The first statement shall be filed not later than four p.m. | 2036 |
on the day that is twelve days before election day. The second | 2037 |
statement shall be filed not sooner than the day that is eight | 2038 |
days after election day and not later than thirty-eight days after | 2039 |
election day. The first statement shall reflect expenditures made | 2040 |
to the close of business on the twentieth day before election day. | 2041 |
The second statement shall reflect expenditures made during the | 2042 |
period beginning on the nineteenth day before election day and | 2043 |
ending on the close of business on the seventh day after election | 2044 |
day. | 2045 |
Sec. 742.043. (A) No person shall knowingly fail to file a | 2046 |
complete and accurate statement in accordance with section 742.042 | 2047 |
of the Revised Code. | 2048 |
(B) No person, during the course of a person seeking | 2049 |
nomination for, and during any campaign for, election to the board | 2050 |
of trustees of the police and fire pension fund, shall knowingly | 2051 |
and with intent to affect the nomination or the outcome of the | 2052 |
campaign do any of the following by means of campaign materials, | 2053 |
an advertisement on radio or television or in a newspaper or | 2054 |
periodical, a public speech, press release, or otherwise: | 2055 |
(1) With regard to a candidate, identify the candidate in a | 2056 |
manner that implies that the candidate is a member of the board or | 2057 |
use the term "re-elect" when the candidate is not currently a | 2058 |
member of the board; | 2059 |
(2) Make a false statement concerning the formal schooling or | 2060 |
training completed or attempted by a candidate; a degree, diploma, | 2061 |
certificate, scholarship, grant, award, prize, or honor received, | 2062 |
earned, or held by a candidate; or the period of time during which | 2063 |
a candidate attended any school, college, community technical | 2064 |
school, or institution; | 2065 |
(3) Make a false statement concerning the professional, | 2066 |
occupational, or vocational licenses held by a candidate, or | 2067 |
concerning any position the candidate held for which the candidate | 2068 |
received a salary or wages; | 2069 |
(4) Make a false statement that a candidate or public | 2070 |
official has been indicted or convicted of a theft offense, | 2071 |
extortion, or other crime involving financial corruption or moral | 2072 |
turpitude; | 2073 |
(5) Make a statement that a candidate has been indicted for | 2074 |
any crime or has been the subject of a finding by the Ohio | 2075 |
elections commission without disclosing the outcome of any legal | 2076 |
proceedings resulting from the indictment or finding; | 2077 |
(6) Make a false statement that a candidate or official has a | 2078 |
record of treatment or confinement for mental disorder; | 2079 |
(7) Make a false statement that a candidate or official has | 2080 |
been subjected to military discipline for criminal misconduct or | 2081 |
dishonorably discharged from the armed services; | 2082 |
(8) Falsely identify the source of a statement, issue | 2083 |
statements under the name of another person without authorization, | 2084 |
or falsely state the endorsement of or opposition to a candidate | 2085 |
by a person or publication; | 2086 |
(9) Make a false statement concerning the voting record of a | 2087 |
candidate or public official; | 2088 |
(10) Post, publish, circulate, distribute, or otherwise | 2089 |
disseminate a false statement concerning a candidate, either | 2090 |
knowing the same to be false or with reckless disregard of whether | 2091 |
it was false or not, if the statement is designed to promote the | 2092 |
election, nomination, or defeat of the candidate. | 2093 |
Sec. 742.044. The secretary of state, or any person acting | 2094 |
on personal knowledge and subject to the penalties of perjury, may | 2095 |
file a complaint with the Ohio elections commission alleging a | 2096 |
violation of section 742.043 of the Revised Code. The complaint | 2097 |
shall be made on a form prescribed and provided by the commission. | 2098 |
On receipt of a complaint under this section, the commission | 2099 |
shall hold a hearing open to the public to determine whether the | 2100 |
violation alleged in the complaint has occurred. The commission | 2101 |
may administer oaths and issue subpoenas to any person in the | 2102 |
state compelling the attendance of witnesses and the production of | 2103 |
relevant papers, books, accounts, and reports. On the refusal of | 2104 |
any person to obey a subpoena or to be sworn or to answer as a | 2105 |
witness, the commission may apply to the court of common pleas of | 2106 |
Franklin county under section 2705.03 of the Revised Code. The | 2107 |
court shall hold contempt proceedings in accordance with Chapter | 2108 |
2705. of the Revised Code. | 2109 |
The commission shall provide the person accused of the | 2110 |
violation at least seven days prior notice of the time, date, and | 2111 |
place of the hearing. The accused may be represented by an | 2112 |
attorney and shall have an opportunity to present evidence, call | 2113 |
witnesses, and cross-examine witnesses. | 2114 |
At the hearing, the commission shall determine whether the | 2115 |
violation alleged in the complaint has occurred. If the commission | 2116 |
determines that a violation of division (A) of section 742.043 of | 2117 |
the Revised Code has occurred, the commission shall either impose | 2118 |
a fine under section 742.99 of the Revised Code or enter a finding | 2119 |
that good cause has been shown not to impose the fine. If the | 2120 |
commission determines that a violation of division (B) of section | 2121 |
742.043 of the Revised Code has occurred, the commission shall | 2122 |
impose the fine described in section 742.99 of the Revised Code, | 2123 |
refer the matter to the appropriate prosecutor, or enter a finding | 2124 |
that good cause has been shown not to impose a fine or refer the | 2125 |
matter to a prosecutor. | 2126 |
Sec. 742.046. An employee member, firefighter retirant | 2127 |
member, or police retirant member of the board of trustees of the | 2128 |
police and fire pension fund who is charged with committing a | 2129 |
felony, a theft offense as defined in section 2913.01 of the | 2130 |
Revised Code, or a violation of section 102.02, 102.03, 102.04, | 2131 |
2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or | 2132 |
2921.44 of the Revised Code shall be suspended from participation | 2133 |
on the board for the period during which the charges are pending. | 2134 |
If the charges are dismissed, the member is found not guilty, or | 2135 |
the charges are otherwise resolved in a manner not resulting in | 2136 |
the member being convicted of or pleading guilty to an offense of | 2137 |
that nature, the suspension shall end, and the member may | 2138 |
participate on the board. If the member pleads guilty to or is | 2139 |
convicted of the offense, the position of the member on the board | 2140 |
shall be deemed vacant. A person who has pleaded guilty to or been | 2141 |
convicted of an offense of that nature is ineligible for election | 2142 |
to the office of employee member, firefighter retirant member, or | 2143 |
police retirant member of the board of trustees of the police and | 2144 |
fire pension fund. | 2145 |
The Ohio retirement study council may hold a hearing to | 2146 |
determine whether to remove an employee member, firefighter | 2147 |
retirant member, or police retirant member of the board of | 2148 |
trustees of the police and fire pension fund who has been | 2149 |
suspended pursuant to this section. If it decides to hold a | 2150 |
hearing, the council shall provide the suspended board member at | 2151 |
least seven days prior notice of the time, date, and place of the | 2152 |
hearing. The suspended board member may be represented by an | 2153 |
attorney. At the hearing the suspended board member, or the | 2154 |
suspended board member's attorney, shall have an opportunity to | 2155 |
present evidence, call witnesses, and cross-examine witnesses. The | 2156 |
hearing shall be open to the public. At the conclusion of the | 2157 |
hearing, if the voting members of the council unanimously vote to | 2158 |
remove the suspended board member, the suspended board member | 2159 |
shall be removed from the board, and the position of the member | 2160 |
shall be deemed vacant. | 2161 |
Sec. 742.05. Any vacancy occurring in the term of a member | 2162 |
of the board of trustees of the Ohio police and fire pension fund | 2163 |
who is the fiscal officer of a municipal corporation shall be | 2164 |
filled by appointment by the governor for the unexpired term of | 2165 |
such member. | 2166 |
| 2167 |
or retirant member of
the board | 2168 |
remaining | 2169 |
2170 | |
retirant member. On certification of the election results under | 2171 |
section 111.30 of the Revised Code, the successor member shall | 2172 |
hold office until the next board election that occurs not less | 2173 |
than ninety days after the successor member's election. | 2174 |
| 2175 |
2176 | |
2177 |
Elections under this section to fill a vacancy on the board | 2178 |
shall be conducted under the supervision of the secretary of state | 2179 |
pursuant to section 111.30 of the Revised Code. | 2180 |
If a member of the board who is the fiscal officer of a | 2181 |
municipal corporation ceases to be a fiscal officer of a municipal | 2182 |
corporation, a vacancy shall exist. | 2183 |
If a member of the board who is the mayor or chief executive | 2184 |
officer of a municipal corporation ceases to be the mayor or chief | 2185 |
executive officer of a municipal corporation, a vacancy shall | 2186 |
exist. | 2187 |
If a member of the board who is the chief of a police | 2188 |
department or a fire department ceases to be the chief of a police | 2189 |
department or a fire department, a vacancy shall exist. | 2190 |
If an employee member of the board ceases to be a member of | 2191 |
the fund, a vacancy shall exist. | 2192 |
If as a result of changed circumstances a retirant member no | 2193 |
longer qualifies for membership on the board as a retirant member, | 2194 |
a vacancy shall exist. | 2195 |
Any | 2196 |
board | 2197 |
2198 | |
meetings of the board, without valid excuse, shall be considered | 2199 |
as having resigned from the board and the board shall declare the | 2200 |
member's office vacated and as of the date of the adoption of a | 2201 |
proper resolution a vacancy shall exist. | 2202 |
Sec. 742.10. The board of trustees of the Ohio police and | 2203 |
fire pension fund may sue and be sued, plead and be impleaded, | 2204 |
contract and be contracted with, employ and fix the compensation | 2205 |
of employees, and adopt rules for the proper administration and | 2206 |
management of the fund. | 2207 |
Effective ninety days after the effective date of this | 2208 |
amendment, the board of trustees may not employ a state retirement | 2209 |
system investment officer, as defined in section 1707.01 of the | 2210 |
Revised Code, who does not hold a valid state retirement system | 2211 |
investment officer license issued by the division of securities in | 2212 |
the department of commerce. | 2213 |
If the Ohio retirement study council establishes a uniform | 2214 |
format for any report the board is required to submit to the | 2215 |
council, the board shall submit the report in that format. | 2216 |
The attorney general shall prescribe procedures for the | 2217 |
adoption of rules authorized under this chapter, consistent with | 2218 |
the provisions of section 111.15 of the Revised Code under which | 2219 |
all rules shall be filed in order to be effective. Such procedures | 2220 |
shall establish methods by which notice of proposed rules is given | 2221 |
to interested parties and rules adopted by the board published and | 2222 |
otherwise made available. When it files a rule with the joint | 2223 |
committee on agency rule review pursuant to section 111.15 of the | 2224 |
Revised Code, the board shall submit to the Ohio retirement study | 2225 |
council a copy of the full text of the rule, and if applicable, a | 2226 |
copy of the rule summary and fiscal analysis required by division | 2227 |
(B) of section 127.18 of the Revised Code. | 2228 |
All rules adopted pursuant to this chapter, prior to August | 2229 |
20, 1976, shall be published and made available to interested | 2230 |
parties by January 1, 1977. | 2231 |
Sec. 742.102. The board of trustees of the police and fire | 2232 |
pension fund shall do all of the following: | 2233 |
(A) In consultation with the Ohio ethics commission, review | 2234 |
any existing policy regarding the travel and payment of travel | 2235 |
expenses of members of the board of trustees and employees of the | 2236 |
fund and adopt rules in accordance with section 742.10 of the | 2237 |
Revised Code establishing a new or revised policy regarding travel | 2238 |
and payment of travel expenses; | 2239 |
(B) If the board intends to award a bonus to any employee of | 2240 |
the board, adopt rules in accordance with section 742.10 of the | 2241 |
Revised Code establishing a policy regarding employee bonuses; | 2242 |
(C) Provide copies of the rules adopted under divisions (A) | 2243 |
and (B) of this section to each member of the Ohio retirement | 2244 |
study council; | 2245 |
(D) Submit to the Ohio retirement study council a proposed | 2246 |
operating budget, including a travel budget, for the next | 2247 |
immediate fiscal year and adopt that budget not earlier than sixty | 2248 |
days after it is submitted to the council. | 2249 |
Sec. 742.103. The board of trustees of the police and fire | 2250 |
pension fund shall, in consultation with the Ohio ethics | 2251 |
commission, develop an ethics policy. The board shall submit this | 2252 |
policy to the Ohio retirement study council for approval. | 2253 |
The council shall review the policy in consultation with the | 2254 |
Ohio ethics commission and, if the council determines that the | 2255 |
policy is adequate, approve the policy. If the council determines | 2256 |
that the policy is inadequate, it shall specify the revisions to | 2257 |
be made and the board shall submit a revised policy. If the | 2258 |
council approves the revised policy, the board shall adopt it. If | 2259 |
not, the board shall make any further revisions required by the | 2260 |
council and adopt the policy. | 2261 |
The board periodically shall provide ethics training to | 2262 |
members and employees of the board. The training shall include | 2263 |
training regarding the requirements and prohibitions of Chapter | 2264 |
102. of the Revised Code and sections 2921.42 and 2921.43 of the | 2265 |
Revised Code and any other training the board considers | 2266 |
appropriate. | 2267 |
The board shall establish a procedure to ensure that each | 2268 |
employee of the board is informed of the procedure for filing a | 2269 |
complaint alleging violation of Chapter 102. of the Revised Code | 2270 |
or section 2921.42 or 2921.43 of the Revised Code with the Ohio | 2271 |
ethics commission or the appropriate prosecuting attorney. | 2272 |
Sec. 742.104. (A) The board of trustees of the police and | 2273 |
fire pension fund shall designate a person who is a licensed state | 2274 |
retirement system investment officer to be the chief investment | 2275 |
officer for the police and fire pension fund. The board shall | 2276 |
notify the division of securities of the department of commerce in | 2277 |
writing of its designation and of any change in its designation | 2278 |
within ten calendar days of the designation or change. | 2279 |
(B) The chief investment officer shall reasonably supervise | 2280 |
the licensed state retirement system investment officers and other | 2281 |
persons employed by the police and fire pension fund with a view | 2282 |
toward preventing violations of Chapter 1707. of the Revised Code, | 2283 |
the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and | 2284 |
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. | 2285 |
and following, and the "Securities Exchange Act of 1934," 48 Stat. | 2286 |
881, 15 U.S.C. 78a, and following, and the rules and regulations | 2287 |
promulgated under those statutes. This duty of reasonable | 2288 |
supervision shall include the adoption, implementation, and | 2289 |
enforcement of written policies and procedures reasonably designed | 2290 |
to prevent persons employed by the police and fire pension fund | 2291 |
from misusing material, nonpublic information in violation of | 2292 |
those laws, rules, and regulations. | 2293 |
For purposes of this division, no chief investment officer | 2294 |
shall be considered to have failed to satisfy the officer's duty | 2295 |
of reasonable supervision if the officer has done all of the | 2296 |
following: | 2297 |
(1) Adopted and implemented written procedures, and a system | 2298 |
for applying the procedures, that would reasonably be expected to | 2299 |
prevent and detect, insofar as practicable, any violation by its | 2300 |
licensed investment officers and other persons employed by the | 2301 |
police and fire pension fund; | 2302 |
(2) Reasonably discharged the duties and obligations | 2303 |
incumbent on the chief investment officer by reason of the | 2304 |
established procedures and the system for applying the procedures | 2305 |
when the officer had no reasonable cause to believe that there was | 2306 |
a failure to comply with the procedures and systems; | 2307 |
(3) Reviewed, at least annually, the adequacy of the policies | 2308 |
and procedures established pursuant to this section and the | 2309 |
effectiveness of their implementation. | 2310 |
(C) The chief investment officer shall ensure that securities | 2311 |
transactions are executed in such a manner that the fund's total | 2312 |
costs or proceeds in each transaction are the most favorable under | 2313 |
the circumstances. | 2314 |
For purposes of this division, no chief investment officer | 2315 |
shall be considered to have failed to satisfy the officer's duty | 2316 |
of best execution if the officer has done both of the following: | 2317 |
(1) Adopted and implemented a written policy that outlines | 2318 |
the criteria used to select broker-dealers that execute securities | 2319 |
transactions on behalf of the police and fire pension fund, which | 2320 |
criteria shall include all of the following: | 2321 |
(a) Commissions charged by the broker-dealer, both in the | 2322 |
aggregate and on a per share basis; | 2323 |
(b) The execution speed and trade settlement capabilities of | 2324 |
the broker-dealer; | 2325 |
(c) The responsiveness, reliability, and integrity of the | 2326 |
broker-dealer; | 2327 |
(d) The nature and value of research provided by the | 2328 |
broker-dealer; | 2329 |
(e) Any special capabilities of the broker-dealer. | 2330 |
(2) Reviewed, at least annually, the performance of | 2331 |
broker-dealers that execute securities transactions on behalf of | 2332 |
the police and fire pension fund. | 2333 |
Sec. 742.114. The attorney general may maintain a civil | 2334 |
action under section 109.98 of the Revised Code against a member | 2335 |
of the board of trustees of the Ohio police and fire pension fund | 2336 |
for harm resulting from a breach of the member's fiduciary duty. | 2337 |
Sec. 742.38. (A)(1) The board of trustees of the Ohio police | 2338 |
and fire pension fund shall adopt rules establishing minimum | 2339 |
medical testing and diagnostic standards or procedures to be | 2340 |
incorporated into physical examinations administered by physicians | 2341 |
to prospective members of the fund. The standards or procedures | 2342 |
shall include diagnosis and evaluation of the existence of any | 2343 |
heart disease, cardiovascular disease, or respiratory disease. The | 2344 |
rules shall specify the form of the physician's report and the | 2345 |
information to be included in it. | 2346 |
The board shall notify all employers of the establishment of | 2347 |
the minimum standards or procedures and shall include with the | 2348 |
notice a copy of the standards or procedures. The board shall | 2349 |
notify all employers of any changes made to the standards or | 2350 |
procedures. Once the standards or procedures take effect, | 2351 |
employers shall cause each prospective member of the fund to | 2352 |
submit to a physical examination that incorporates the standards | 2353 |
or procedures. | 2354 |
(2) Division (A)(2) of this section applies to an employee | 2355 |
who becomes a member of the fund on or after the date the minimum | 2356 |
standards or procedures described in division (A)(1) of this | 2357 |
section take effect. For each employee described in division | 2358 |
(A)(2) of this section, the employer shall forward to the board a | 2359 |
copy of the physician's report of a physical examination that | 2360 |
incorporates the standards or procedures described in division | 2361 |
(A)(1) of this section. If an employer fails to forward the report | 2362 |
in the form required by the board on or before the date that is | 2363 |
sixty days after the employee becomes a member of the fund, the | 2364 |
board shall assess against the employer a penalty determined under | 2365 |
section 742.353 of the Revised Code. | 2366 |
(B) Application for a disability benefit may be made by a | 2367 |
member of the fund or, if the member is incapacitated as defined | 2368 |
in rules adopted by the board, by a person acting on the member's | 2369 |
behalf. Not later than fourteen days after receiving an | 2370 |
application for a disability benefit from a member or a person | 2371 |
acting on behalf of a member, the board shall notify the member's | 2372 |
employer and the chief of police of the police department | 2373 |
employing the member or the chief of the fire department employing | 2374 |
the member, as applicable, that an application has been filed. The | 2375 |
notice shall state the name of the member who filed the | 2376 |
application or on whose behalf the application was filed and the | 2377 |
member's position or rank. The notice and the fact that the | 2378 |
application has been filed shall be confidential. Not later than | 2379 |
twenty-eight days after receiving the notice or filing an | 2380 |
application on behalf of a member, the employer shall forward to | 2381 |
the board a statement certifying the member's job description and | 2382 |
any other information required by the board to process the | 2383 |
application. | 2384 |
If the member applying for a disability benefit becomes a | 2385 |
member of the fund prior to the date the minimum standards or | 2386 |
procedures described in division (A)(1) of this section take | 2387 |
effect, the board may request from the member's employer a copy of | 2388 |
the physician's report of the member's physical examination taken | 2389 |
on entry into the police or fire department or, if the employer | 2390 |
does not have a copy of the report, a written statement certifying | 2391 |
that the employer does not have a copy of the report. If an | 2392 |
employer fails to forward the report or statement in the form | 2393 |
required by the board on or before the date that is twenty-eight | 2394 |
days after the date of the request, the board shall assess against | 2395 |
the employer a penalty determined under section 742.353 of the | 2396 |
Revised Code. The board shall maintain the information submitted | 2397 |
under this division and division (A)(2) of this section in the | 2398 |
member's file. | 2399 |
(C) For purposes of determining under division (D) of this | 2400 |
section whether a member of the fund is disabled, the board shall | 2401 |
adopt rules establishing objective criteria under which the board | 2402 |
shall make the determination. The rules shall include standards | 2403 |
that provide for all of the following: | 2404 |
(1) Evaluating a member's illness or injury on which an | 2405 |
application for disability benefits is based; | 2406 |
(2) Defining the occupational duties of a police officer or | 2407 |
firefighter; | 2408 |
(3) Providing for the board to assign competent and | 2409 |
disinterested physicians and vocational evaluators to conduct | 2410 |
examinations of a member; | 2411 |
(4) Requiring a written report for each disability | 2412 |
application that includes a summary of findings, medical opinions, | 2413 |
including an opinion on whether the illness or injury upon which | 2414 |
the member's application for disability benefits is based was | 2415 |
caused or induced by the actual performance of the member's | 2416 |
official duties, and any recommendations or comments based on the | 2417 |
medical opinions; | 2418 |
(5) Providing for the board to consider the member's | 2419 |
potential for retraining or reemployment. | 2420 |
(D) This division does not apply to members of the fund who | 2421 |
have elected to receive benefits and pensions in accordance with | 2422 |
division (A) or (B) of section 742.37 of the Revised Code or from | 2423 |
a police relief and pension fund or a firemen's relief and pension | 2424 |
fund in accordance with the rules of that fund in force on April | 2425 |
1, 1947. | 2426 |
(1) As used in division (D)(1) of this section: | 2427 |
(a) "Totally disabled" means a member of the fund is unable | 2428 |
to perform the duties of any gainful occupation for which the | 2429 |
member is reasonably fitted by training, experience, and | 2430 |
accomplishments. Absolute helplessness is not a prerequisite of | 2431 |
being totally disabled. | 2432 |
(b) "Permanently disabled" means a condition of disability | 2433 |
from which there is no present indication of recovery. | 2434 |
A member of the fund who is permanently and totally disabled | 2435 |
as the result of the performance of the member's official duties | 2436 |
as a member of a police or fire department shall be paid annual | 2437 |
disability benefits in accordance with division (A) of section | 2438 |
742.39 of the Revised Code. In determining whether a member of the | 2439 |
fund is permanently and totally disabled, the board shall consider | 2440 |
standards adopted under division (C) of this section applicable to | 2441 |
the determination. | 2442 |
(2) A member of the fund who is partially disabled as the | 2443 |
result of the performance of the member's official duties as a | 2444 |
member of a police or fire department shall, if the disability | 2445 |
prevents the member from performing those duties and impairs the | 2446 |
member's earning capacity, receive annual disability benefits in | 2447 |
accordance with division (B) of section 742.39 of the Revised | 2448 |
Code. In determining whether a member of the fund is partially | 2449 |
disabled, the board shall consider standards adopted under | 2450 |
division (C) of this section applicable to the determination. | 2451 |
(3) A member of the fund who is disabled as a result of heart | 2452 |
disease or any cardiovascular or respiratory disease of a chronic | 2453 |
nature, which disease or any evidence of which disease was not | 2454 |
revealed by the physical examination passed by the member on entry | 2455 |
into the department, is presumed to have incurred the disease | 2456 |
while performing the member's official duties, unless the contrary | 2457 |
is shown by competent evidence. | 2458 |
(4) A member of the fund who has completed five or more years | 2459 |
of active service in a police or fire department and has incurred | 2460 |
a disability not caused or induced by the actual performance of | 2461 |
the member's official duties as a member of the department, or by | 2462 |
the member's own negligence, shall if the disability prevents the | 2463 |
member from performing those duties and impairs the member's | 2464 |
earning capacity, receive annual disability benefits in accordance | 2465 |
with division (C) of section 742.39 of the Revised Code. In | 2466 |
determining whether a member of the fund is disabled, the board | 2467 |
shall consider standards adopted under division (C) of this | 2468 |
section applicable to the determination. | 2469 |
(5) The board shall notify a member of its final action | 2470 |
awarding a disability benefit to the member within thirty days of | 2471 |
the final action. The notice shall be sent by certified mail, | 2472 |
return receipt requested. Not later than ninety days after receipt | 2473 |
of notice from the board, the member shall elect, on a form | 2474 |
provided by the board, either to accept or waive the disability | 2475 |
benefit award. If the member elects to waive the disability | 2476 |
benefit award or fails to make an election within the time period, | 2477 |
the award is rescinded. A member who later seeks a disability | 2478 |
benefit award shall be required to make a new application, which | 2479 |
shall be dealt with in accordance with the procedures used for | 2480 |
original disability benefit applications. | 2481 |
A person is not eligible to apply for or receive disability | 2482 |
benefits under this division, section 742.39 of the Revised Code, | 2483 |
or division (C)(2), (3), (4), or (5) of former section 742.37 of | 2484 |
the Revised Code unless the person is a member of the fund on the | 2485 |
date on which the application for disability benefits is submitted | 2486 |
to the fund. | 2487 |
With the exception of persons who may make application for | 2488 |
increased benefits as provided in division (D)(2) or (4) of this | 2489 |
section or division (C)(3) or (5) of former section 742.37 of the | 2490 |
Revised Code on or after July 24, 1986, or persons who may make | 2491 |
application for benefits as provided in section 742.26 of the | 2492 |
Revised Code, no person receiving a pension or benefit under this | 2493 |
section or division (C) of former section 742.37 of the Revised | 2494 |
Code may apply for any new, changed, or different benefit. | 2495 |
Sec. 742.41. (A) As used in this section: | 2496 |
(1) "Other system retirant" has the same meaning as in | 2497 |
section 742.26 of the Revised Code. | 2498 |
(2) "Personal history record" includes a member's, former | 2499 |
member's, or other system retirant's name, address, telephone | 2500 |
number, social security number, record of contributions, | 2501 |
correspondence with the Ohio police and fire pension fund, status | 2502 |
of any application for benefits, and any other information deemed | 2503 |
confidential by the trustees of the fund. | 2504 |
(B) The treasurer of state shall furnish annually to the | 2505 |
board of trustees of the fund a sworn statement of the amount of | 2506 |
the funds in the treasurer of state's custody belonging to the | 2507 |
Ohio police and fire pension fund. The records of the fund shall | 2508 |
be open for public inspection except for the following, which | 2509 |
shall be excluded, except with the written authorization of the | 2510 |
individual concerned: | 2511 |
(1) The individual's personal history record; | 2512 |
(2) Any information identifying, by name and address, the | 2513 |
amount of a monthly allowance or benefit paid to the individual. | 2514 |
(C) All medical reports and recommendations required are | 2515 |
privileged, except that copies of such medical reports or | 2516 |
recommendations shall be made available to the personal physician, | 2517 |
attorney, or authorized agent of the individual concerned upon | 2518 |
written release received from the individual or the individual's | 2519 |
agent or, when necessary for the proper administration of the | 2520 |
fund, to the board-assigned physician. | 2521 |
(D) Any person who is a member of the fund or an other system | 2522 |
retirant shall be furnished with a statement of the amount to the | 2523 |
credit of the person's individual account upon the person's | 2524 |
written request. The fund need not answer more than one such | 2525 |
request of a person in any one year. | 2526 |
(E) Notwithstanding the exceptions to public inspection in | 2527 |
division (B) of this section, the fund may furnish the following | 2528 |
information: | 2529 |
(1) If a member, former member, or other system retirant is | 2530 |
subject to an order issued under section 2907.15 of the Revised | 2531 |
Code or is convicted of or pleads guilty to a violation of section | 2532 |
2921.41 of the Revised Code, on written request of a prosecutor as | 2533 |
defined in section 2935.01 of the Revised Code, the fund shall | 2534 |
furnish to the prosecutor the information requested from the | 2535 |
individual's personal history record. | 2536 |
(2) Pursuant to a court order issued pursuant to Chapter | 2537 |
3119., 3121., 3123., or 3125. of the Revised Code, the fund shall | 2538 |
furnish to a court or child support enforcement agency the | 2539 |
information required under that section. | 2540 |
(3) At the request of any organization or association of | 2541 |
members of the fund, the fund shall provide a list of the names | 2542 |
and addresses of members of the fund and other system retirants. | 2543 |
The fund shall comply with the request of such organization or | 2544 |
association at least once a year and may impose a reasonable | 2545 |
charge for the list. | 2546 |
(4) Within fourteen days after receiving from the director of | 2547 |
job and family services a list of the names and social security | 2548 |
numbers of recipients of public assistance pursuant to section | 2549 |
5101.181 of the Revised Code, the fund shall inform the auditor of | 2550 |
state of the name, current or most recent employer address, and | 2551 |
social security number of each member or other system retirant | 2552 |
whose name and social security number are the same as that of a | 2553 |
person whose name or social security number was submitted by the | 2554 |
director. The fund and its employees shall, except for purposes of | 2555 |
furnishing the auditor of state with information required by this | 2556 |
section, preserve the confidentiality of recipients of public | 2557 |
assistance in compliance with division (A) of section 5101.181 of | 2558 |
the Revised Code. | 2559 |
(5) The fund shall comply with orders issued under section | 2560 |
3105.87 of the Revised Code. | 2561 |
On the written request of an alternate payee, as defined in | 2562 |
section 3105.80 of the Revised Code, the fund shall furnish to the | 2563 |
alternate payee information on the amount and status of any | 2564 |
amounts payable to the alternate payee under an order issued under | 2565 |
section 3105.171 or 3105.65 of the Revised Code. | 2566 |
(6) At the request of any person, the fund shall make | 2567 |
available to the person copies of all documents, including | 2568 |
resumes, in the fund's possession regarding filling a vacancy of a | 2569 |
police officer employee member, firefighter employee member, | 2570 |
police retirant member, or firefighter retirant member of the | 2571 |
board of trustees. The person who made the request shall pay the | 2572 |
cost of compiling, copying, and mailing the documents. The | 2573 |
information described in this division is a public record. | 2574 |
(7) The fund shall furnish the personal history records kept | 2575 |
by the fund to the secretary of state for the purposes of | 2576 |
certifying an election pursuant to section 111.30 of the Revised | 2577 |
Code. | 2578 |
(F) A statement that contains information obtained from the | 2579 |
fund's records that is signed by the secretary of the board of | 2580 |
trustees of the Ohio police and fire pension fund and to which the | 2581 |
board's official seal is affixed, or copies of the fund's records | 2582 |
to which the signature and seal are attached, shall be received as | 2583 |
true copies of the fund's records in any court or before any | 2584 |
officer of this state. | 2585 |
Sec. 742.99. (A) Whoever violates section 742.043 of the | 2586 |
Revised Code shall be fined not more than one hundred dollars for | 2587 |
each day of the violation. | 2588 |
(B) Whoever violates division (B) of section 742.043 of the | 2589 |
Revised Code shall be imprisoned for not more than six months or | 2590 |
fined not more than five thousand dollars, or both. | 2591 |
(C) Fines imposed by the Ohio elections commission under this | 2592 |
section shall be paid into the Ohio elections commission fund | 2593 |
created under section 3513.10 of the Revised Code. | 2594 |
Sec. 1707.01. As used in this chapter: | 2595 |
(A) Whenever the context requires it, "division" or "division | 2596 |
of securities" may be read as "director of commerce" or as | 2597 |
"commissioner of securities." | 2598 |
(B) "Security" means any certificate or instrument, or any | 2599 |
oral, written, or electronic agreement, understanding, or | 2600 |
opportunity, that represents title to or interest in, or is | 2601 |
secured by any lien or charge upon, the capital, assets, profits, | 2602 |
property, or credit of any person or of any public or governmental | 2603 |
body, subdivision, or agency. It includes shares of stock, | 2604 |
certificates for shares of stock, an uncertificated security, | 2605 |
membership interests in limited liability companies, voting-trust | 2606 |
certificates, warrants and options to purchase securities, | 2607 |
subscription rights, interim receipts, interim certificates, | 2608 |
promissory notes, all forms of commercial paper, evidences of | 2609 |
indebtedness, bonds, debentures, land trust certificates, fee | 2610 |
certificates, leasehold certificates, syndicate certificates, | 2611 |
endowment certificates, interests in or under profit-sharing or | 2612 |
participation agreements, interests in or under oil, gas, or | 2613 |
mining leases, preorganization or reorganization subscriptions, | 2614 |
preorganization certificates, reorganization certificates, | 2615 |
interests in any trust or pretended trust, any investment | 2616 |
contract, any life settlement interest, any instrument evidencing | 2617 |
a promise or an agreement to pay money, warehouse receipts for | 2618 |
intoxicating liquor, and the currency of any government other than | 2619 |
those of the United States and Canada, but sections 1707.01 to | 2620 |
1707.45 of the Revised Code do not apply to the sale of real | 2621 |
estate. | 2622 |
(C)(1) "Sale" has the full meaning of "sale" as applied by or | 2623 |
accepted in courts of law or equity, and includes every | 2624 |
disposition, or attempt to dispose, of a security or of an | 2625 |
interest in a security. "Sale" also includes a contract to sell, | 2626 |
an exchange, an attempt to sell, an option of sale, a solicitation | 2627 |
of a sale, a solicitation of an offer to buy, a subscription, or | 2628 |
an offer to sell, directly or indirectly, by agent, circular, | 2629 |
pamphlet, advertisement, or otherwise. | 2630 |
(2) "Sell" means any act by which a sale is made. | 2631 |
(3) The use of advertisements, circulars, or pamphlets in | 2632 |
connection with the sale of securities in this state exclusively | 2633 |
to the purchasers specified in division (D) of section 1707.03 of | 2634 |
the Revised Code is not a sale when the advertisements, circulars, | 2635 |
and pamphlets describing and offering those securities bear a | 2636 |
readily legible legend in substance as follows: "This offer is | 2637 |
made on behalf of dealers licensed under sections 1707.01 to | 2638 |
1707.45 of the Revised Code, and is confined in this state | 2639 |
exclusively to institutional investors and licensed dealers." | 2640 |
(4) The offering of securities by any person in conjunction | 2641 |
with a licensed dealer by use of advertisement, circular, or | 2642 |
pamphlet is not a sale if that person does not otherwise attempt | 2643 |
to sell securities in this state. | 2644 |
(5) Any security given with, or as a bonus on account of, any | 2645 |
purchase of securities is conclusively presumed to constitute a | 2646 |
part of the subject of that purchase and has been "sold." | 2647 |
(6) "Sale" by an owner, pledgee, or mortgagee, or by a person | 2648 |
acting in a representative capacity, includes sale on behalf of | 2649 |
such party by an agent, including a licensed dealer or | 2650 |
salesperson. | 2651 |
(D) "Person," except as otherwise provided in this chapter, | 2652 |
means a natural person, firm, partnership, limited partnership, | 2653 |
partnership association, syndicate, joint-stock company, | 2654 |
unincorporated association, trust or trustee except where the | 2655 |
trust was created or the trustee designated by law or judicial | 2656 |
authority or by a will, and a corporation or limited liability | 2657 |
company organized under the laws of any state, any foreign | 2658 |
government, or any political subdivision of a state or foreign | 2659 |
government. | 2660 |
(E)(1) "Dealer," except as otherwise provided in this | 2661 |
chapter, means every person, other than a salesperson, who engages | 2662 |
or professes to engage, in this state, for either all or part of | 2663 |
the person's time, directly or indirectly, either in the business | 2664 |
of the sale of securities for the person's own account, or in the | 2665 |
business of the purchase or sale of securities for the account of | 2666 |
others in the reasonable expectation of receiving a commission, | 2667 |
fee, or other remuneration as a result of engaging in the purchase | 2668 |
and sale of securities. "Dealer" does not mean any of the | 2669 |
following: | 2670 |
(a) Any issuer, including any officer, director, employee, or | 2671 |
trustee of, or member or manager of, or partner in, or any general | 2672 |
partner of, any issuer, that sells, offers for sale, or does any | 2673 |
act in furtherance of the sale of a security that represents an | 2674 |
economic interest in that issuer, provided no commission, fee, or | 2675 |
other similar remuneration is paid to or received by the issuer | 2676 |
for the sale; | 2677 |
(b) Any licensed attorney, public accountant, or firm of such | 2678 |
attorneys or accountants, whose activities are incidental to the | 2679 |
practice of the attorney's, accountant's, or firm's profession; | 2680 |
(c) Any person that, for the account of others, engages in | 2681 |
the purchase or sale of securities that are issued and outstanding | 2682 |
before such purchase and sale, if a majority or more of the equity | 2683 |
interest of an issuer is sold in that transaction, and if, in the | 2684 |
case of a corporation, the securities sold in that transaction | 2685 |
represent a majority or more of the voting power of the | 2686 |
corporation in the election of directors; | 2687 |
(d) Any person that brings an issuer together with a | 2688 |
potential investor and whose compensation is not directly or | 2689 |
indirectly based on the sale of any securities by the issuer to | 2690 |
the investor; | 2691 |
(e) Any bank; | 2692 |
(f) Any person that the division of securities by rule | 2693 |
exempts from the definition of "dealer" under division (E)(1) of | 2694 |
this section. | 2695 |
(2) "Licensed dealer" means a dealer licensed under this | 2696 |
chapter. | 2697 |
(F)(1) "Salesman" or "salesperson" means every natural | 2698 |
person, other than a dealer, who is employed, authorized, or | 2699 |
appointed by a dealer to sell securities within this state. | 2700 |
(2) The general partners of a partnership, and the executive | 2701 |
officers of a corporation or unincorporated association, licensed | 2702 |
as a dealer are not salespersons within the meaning of this | 2703 |
definition, nor are such clerical or other employees of an issuer | 2704 |
or dealer as are employed for work to which the sale of securities | 2705 |
is secondary and incidental; but the division of securities may | 2706 |
require a license from any such partner, executive officer, or | 2707 |
employee if it determines that protection of the public | 2708 |
necessitates the licensing. | 2709 |
(3) "Licensed salesperson" means a salesperson licensed under | 2710 |
this chapter. | 2711 |
(G) "Issuer" means every person who has issued, proposes to | 2712 |
issue, or issues any security. | 2713 |
(H) "Director" means each director or trustee of a | 2714 |
corporation, each trustee of a trust, each general partner of a | 2715 |
partnership, except a partnership association, each manager of a | 2716 |
partnership association, and any person vested with managerial or | 2717 |
directory power over an issuer not having a board of directors or | 2718 |
trustees. | 2719 |
(I) "Incorporator" means any incorporator of a corporation | 2720 |
and any organizer of, or any person participating, other than in a | 2721 |
representative or professional capacity, in the organization of an | 2722 |
unincorporated issuer. | 2723 |
(J) "Fraud," "fraudulent," "fraudulent acts," "fraudulent | 2724 |
practices," or "fraudulent transactions" means anything recognized | 2725 |
on or after July 22, 1929, as such in courts of law or equity; any | 2726 |
device, scheme, or artifice to defraud or to obtain money or | 2727 |
property by means of any false pretense, representation, or | 2728 |
promise; any fictitious or pretended purchase or sale of | 2729 |
securities; and any act, practice, transaction, or course of | 2730 |
business relating to the purchase or sale of securities that is | 2731 |
fraudulent or that has operated or would operate as a fraud upon | 2732 |
the seller or purchaser. | 2733 |
(K) Except as otherwise specifically provided, whenever any | 2734 |
classification or computation is based upon "par value," as | 2735 |
applied to securities without par value, the average of the | 2736 |
aggregate consideration received or to be received by the issuer | 2737 |
for each class of those securities shall be used as the basis for | 2738 |
that classification or computation. | 2739 |
(L)(1) "Intangible property" means patents, copyrights, | 2740 |
secret processes, formulas, services, good will, promotion and | 2741 |
organization fees and expenses, trademarks, trade brands, trade | 2742 |
names, licenses, franchises, any other assets treated as | 2743 |
intangible according to generally accepted accounting principles, | 2744 |
and securities, accounts receivable, or contract rights having no | 2745 |
readily determinable value. | 2746 |
(2) "Tangible property" means all property other than | 2747 |
intangible property and includes securities, accounts receivable, | 2748 |
and contract rights, when the securities, accounts receivable, or | 2749 |
contract rights have a readily determinable value. | 2750 |
(M) "Public utilities" means those utilities defined in | 2751 |
sections 4905.02, 4905.03, 4907.02, and 4907.03 of the Revised | 2752 |
Code; in the case of a foreign corporation, it means those | 2753 |
utilities defined as public utilities by the laws of its domicile; | 2754 |
and in the case of any other foreign issuer, it means those | 2755 |
utilities defined as public utilities by the laws of the situs of | 2756 |
its principal place of business. The term always includes | 2757 |
railroads whether or not they are so defined as public utilities. | 2758 |
(N) "State" means any state of the United States, any | 2759 |
territory or possession of the United States, the District of | 2760 |
Columbia, and any province of Canada. | 2761 |
(O) "Bank" means any bank, trust company, savings and loan | 2762 |
association, savings bank, or credit union that is incorporated or | 2763 |
organized under the laws of the United States, any state of the | 2764 |
United States, Canada, or any province of Canada and that is | 2765 |
subject to regulation or supervision by that country, state, or | 2766 |
province. | 2767 |
(P) "Include," when used in a definition, does not exclude | 2768 |
other things or persons otherwise within the meaning of the term | 2769 |
defined. | 2770 |
(Q)(1) "Registration by description" means that the | 2771 |
requirements of section 1707.08 of the Revised Code have been | 2772 |
complied with. | 2773 |
(2) "Registration by qualification" means that the | 2774 |
requirements of sections 1707.09 and 1707.11 of the Revised Code | 2775 |
have been complied with. | 2776 |
(3) "Registration by coordination" means that there has been | 2777 |
compliance with section 1707.091 of the Revised Code. Reference in | 2778 |
this chapter to registration by qualification also shall be deemed | 2779 |
to include registration by coordination unless the context | 2780 |
otherwise indicates. | 2781 |
(R) "Intoxicating liquor" includes all liquids and compounds | 2782 |
that contain more than three and two-tenths per cent of alcohol by | 2783 |
weight and are fit for use for beverage purposes. | 2784 |
(S) "Institutional investor" means any corporation, bank, | 2785 |
insurance company, pension fund or pension fund trust, employees' | 2786 |
profit-sharing fund or employees' profit-sharing trust, any | 2787 |
association engaged, as a substantial part of its business or | 2788 |
operations, in purchasing or holding securities, or any trust in | 2789 |
respect of which a bank is trustee or cotrustee. "Institutional | 2790 |
investor" does not include any business entity formed for the | 2791 |
primary purpose of evading sections 1707.01 to 1707.45 of the | 2792 |
Revised Code. | 2793 |
(T) "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. 77a, | 2794 |
"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78a, | 2795 |
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, | 2796 |
"Investment Advisers Act of 1940," 54 Stat. 847, 15 U.S.C. 80b, | 2797 |
and "Investment Company Act of 1940," 54 Stat. 789, 15 U.S.C. 80a | 2798 |
mean the federal statutes of those names as amended before or | 2799 |
after March 18, 1999. | 2800 |
(U) "Securities and exchange commission" means the securities | 2801 |
and exchange commission established by the Securities Exchange Act | 2802 |
of 1934. | 2803 |
(V)(1) "Control bid" means the purchase of or offer to | 2804 |
purchase any equity security of a subject company from a resident | 2805 |
of this state if either of the following applies: | 2806 |
(a) After the purchase of that security, the offeror would be | 2807 |
directly or indirectly the beneficial owner of more than ten per | 2808 |
cent of any class of the issued and outstanding equity securities | 2809 |
of the issuer. | 2810 |
(b) The offeror is the subject company, there is a pending | 2811 |
control bid by a person other than the issuer, and the number of | 2812 |
the issued and outstanding shares of the subject company would be | 2813 |
reduced by more than ten per cent. | 2814 |
(2) For purposes of division (V)(1) of this section, "control | 2815 |
bid" does not include any of the following: | 2816 |
(a) A bid made by a dealer for the dealer's own account in | 2817 |
the ordinary course of business of buying and selling securities; | 2818 |
(b) An offer to acquire any equity security solely in | 2819 |
exchange for any other security, or the acquisition of any equity | 2820 |
security pursuant to an offer, for the sole account of the | 2821 |
offeror, in good faith and not for the purpose of avoiding the | 2822 |
provisions of this chapter, and not involving any public offering | 2823 |
of the other security within the meaning of Section 4 of Title I | 2824 |
of the "Securities Act of 1933," 48 Stat. 77, 15 U.S.C.A. 77d(2), | 2825 |
as amended; | 2826 |
(c) Any other offer to acquire any equity security, or the | 2827 |
acquisition of any equity security pursuant to an offer, for the | 2828 |
sole account of the offeror, from not more than fifty persons, in | 2829 |
good faith and not for the purpose of avoiding the provisions of | 2830 |
this chapter. | 2831 |
(W) "Offeror" means a person who makes, or in any way | 2832 |
participates or aids in making, a control bid and includes persons | 2833 |
acting jointly or in concert, or who intend to exercise jointly or | 2834 |
in concert any voting rights attached to the securities for which | 2835 |
the control bid is made and also includes any subject company | 2836 |
making a control bid for its own securities. | 2837 |
(X)(1) "Investment adviser" means any person who, for | 2838 |
compensation, engages in the business of advising others, either | 2839 |
directly or through publications or writings, as to the value of | 2840 |
securities or as to the advisability of investing in, purchasing, | 2841 |
or selling securities, or who, for compensation and as a part of | 2842 |
regular business, issues or promulgates analyses or reports | 2843 |
concerning securities. | 2844 |
(2) "Investment adviser" does not mean any of the following: | 2845 |
(a) Any attorney, accountant, engineer, or teacher, whose | 2846 |
performance of investment advisory services described in division | 2847 |
(X)(1) of this section is solely incidental to the practice of the | 2848 |
attorney's, accountant's, engineer's, or teacher's profession; | 2849 |
(b) A publisher of any bona fide newspaper, news magazine, or | 2850 |
business or financial publication of general and regular | 2851 |
circulation; | 2852 |
(c) A person who acts solely as an investment adviser | 2853 |
representative; | 2854 |
(d) A bank holding company, as defined in the "Bank Holding | 2855 |
Company Act of 1956," 70 Stat. 133, 12 U.S.C. 1841, that is not an | 2856 |
investment company; | 2857 |
(e) A bank, or any receiver, conservator, or other | 2858 |
liquidating agent of a bank; | 2859 |
(f) Any licensed dealer or licensed salesperson whose | 2860 |
performance of investment advisory services described in division | 2861 |
(X)(1) of this section is solely incidental to the conduct of the | 2862 |
dealer's or salesperson's business as a licensed dealer or | 2863 |
licensed salesperson and who receives no special compensation for | 2864 |
the services; | 2865 |
(g) Any person, the advice, analyses, or reports of which do | 2866 |
not relate to securities other than securities that are direct | 2867 |
obligations of, or obligations guaranteed as to principal or | 2868 |
interest by, the United States, or securities issued or guaranteed | 2869 |
by corporations in which the United States has a direct or | 2870 |
indirect interest, and that have been designated by the secretary | 2871 |
of the treasury as exempt securities as defined in the "Securities | 2872 |
Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78c; | 2873 |
(h) Any person that is excluded from the definition of | 2874 |
investment adviser pursuant to section 202(a)(11)(A) to (E) of the | 2875 |
"Investment Advisers Act of 1940," 15 U.S.C. 80b-2(a)(11), or that | 2876 |
has received an order from the securities and exchange commission | 2877 |
under section 202(a)(11)(F) of the "Investment Advisers Act of | 2878 |
1940," 15 U.S.C. 80b-2(a)(11)(F), declaring that the person is not | 2879 |
within the intent of section 202(a)(11) of the Investment Advisers | 2880 |
Act of 1940. | 2881 |
(i) A person who acts solely as a state retirement system | 2882 |
investment officer; | 2883 |
(j) Any other person that the division designates by rule, if | 2884 |
the division finds that the designation is necessary or | 2885 |
appropriate in the public interest or for the protection of | 2886 |
investors or clients and consistent with the purposes fairly | 2887 |
intended by the policy and provisions of this chapter. | 2888 |
(Y)(1) "Subject company" means an issuer that satisfies both | 2889 |
of the following: | 2890 |
(a) Its principal place of business or its principal | 2891 |
executive office is located in this state, or it owns or controls | 2892 |
assets located within this state that have a fair market value of | 2893 |
at least one million dollars. | 2894 |
(b) More than ten per cent of its beneficial or record equity | 2895 |
security holders are resident in this state, more than ten per | 2896 |
cent of its equity securities are owned beneficially or of record | 2897 |
by residents in this state, or more than one thousand of its | 2898 |
beneficial or record equity security holders are resident in this | 2899 |
state. | 2900 |
(2) The division of securities may adopt rules to establish | 2901 |
more specific application of the provisions set forth in division | 2902 |
(Y)(1) of this section. Notwithstanding the provisions set forth | 2903 |
in division (Y)(1) of this section and any rules adopted under | 2904 |
this division, the division, by rule or in an adjudicatory | 2905 |
proceeding, may make a determination that an issuer does not | 2906 |
constitute a "subject company" under division (Y)(1) of this | 2907 |
section if appropriate review of control bids involving the issuer | 2908 |
is to be made by any regulatory authority of another jurisdiction. | 2909 |
(Z) "Beneficial owner" includes any person who directly or | 2910 |
indirectly through any contract, arrangement, understanding, or | 2911 |
relationship has or shares, or otherwise has or shares, the power | 2912 |
to vote or direct the voting of a security or the power to dispose | 2913 |
of, or direct the disposition of, the security. "Beneficial | 2914 |
ownership" includes the right, exercisable within sixty days, to | 2915 |
acquire any security through the exercise of any option, warrant, | 2916 |
or right, the conversion of any convertible security, or | 2917 |
otherwise. Any security subject to any such option, warrant, | 2918 |
right, or conversion privilege held by any person shall be deemed | 2919 |
to be outstanding for the purpose of computing the percentage of | 2920 |
outstanding securities of the class owned by that person, but | 2921 |
shall not be deemed to be outstanding for the purpose of computing | 2922 |
the percentage of the class owned by any other person. A person | 2923 |
shall be deemed the beneficial owner of any security beneficially | 2924 |
owned by any relative or spouse or relative of the spouse residing | 2925 |
in the home of that person, any trust or estate in which that | 2926 |
person owns ten per cent or more of the total beneficial interest | 2927 |
or serves as trustee or executor, any corporation or entity in | 2928 |
which that person owns ten per cent or more of the equity, and any | 2929 |
affiliate or associate of that person. | 2930 |
(AA) "Offeree" means the beneficial or record owner of any | 2931 |
security that an offeror acquires or offers to acquire in | 2932 |
connection with a control bid. | 2933 |
(BB) "Equity security" means any share or similar security, | 2934 |
or any security convertible into any such security, or carrying | 2935 |
any warrant or right to subscribe to or purchase any such | 2936 |
security, or any such warrant or right, or any other security | 2937 |
that, for the protection of security holders, is treated as an | 2938 |
equity security pursuant to rules of the division of securities. | 2939 |
(CC)(1) "Investment adviser representative" means a | 2940 |
supervised person of an investment adviser, provided that the | 2941 |
supervised person has more than five clients who are natural | 2942 |
persons other than excepted persons defined in division (EE) of | 2943 |
this section, and that more than ten per cent of the supervised | 2944 |
person's clients are natural persons other than excepted persons | 2945 |
defined in division (EE) of this section. "Investment adviser | 2946 |
representative" does not mean any of the following: | 2947 |
(a) A supervised person that does not on a regular basis | 2948 |
solicit, meet with, or otherwise communicate with clients of the | 2949 |
investment adviser; | 2950 |
(b) A supervised person that provides only investment | 2951 |
advisory services described in division (X)(1) of this section by | 2952 |
means of written materials or oral statements that do not purport | 2953 |
to meet the objectives or needs of specific individuals or | 2954 |
accounts; | 2955 |
(c) Any other person that the division designates by rule, if | 2956 |
the division finds that the designation is necessary or | 2957 |
appropriate in the public interest or for the protection of | 2958 |
investors or clients and is consistent with the provisions fairly | 2959 |
intended by the policy and provisions of this chapter. | 2960 |
(2) For the purpose of the calculation of clients in division | 2961 |
(CC)(1) of this section, a natural person and the following | 2962 |
persons are deemed a single client: Any minor child of the natural | 2963 |
person; any relative, spouse, or relative of the spouse of the | 2964 |
natural person who has the same principal residence as the natural | 2965 |
person; all accounts of which the natural person or the persons | 2966 |
referred to in division (CC)(2) of this section are the only | 2967 |
primary beneficiaries; and all trusts of which the natural person | 2968 |
or persons referred to in division (CC)(2) of this section are the | 2969 |
only primary beneficiaries. Persons who are not residents of the | 2970 |
United States need not be included in the calculation of clients | 2971 |
under division (CC)(1) of this section. | 2972 |
(3) If subsequent to March 18, 1999, amendments are enacted | 2973 |
or adopted defining "investment adviser representative" for | 2974 |
purposes of the Investment Advisers Act of 1940 or additional | 2975 |
rules or regulations are promulgated by the securities and | 2976 |
exchange commission regarding the definition of "investment | 2977 |
adviser representative" for purposes of the Investment Advisers | 2978 |
Act of 1940, the division of securities shall, by rule, adopt the | 2979 |
substance of the amendments, rules, or regulations, unless the | 2980 |
division finds that the amendments, rules, or regulations are not | 2981 |
necessary for the protection of investors or in the public | 2982 |
interest. | 2983 |
(DD) "Supervised person" means a natural person who is any of | 2984 |
the following: | 2985 |
(1) A partner, officer, or director of an investment adviser, | 2986 |
or other person occupying a similar status or performing similar | 2987 |
functions with respect to an investment adviser; | 2988 |
(2) An employee of an investment adviser; | 2989 |
(3) A person who provides investment advisory services | 2990 |
described in division (X)(1) of this section on behalf of the | 2991 |
investment adviser and is subject to the supervision and control | 2992 |
of the investment adviser. | 2993 |
(EE) "Excepted person" means a natural person to whom any of | 2994 |
the following applies: | 2995 |
(1) Immediately after entering into the investment advisory | 2996 |
contract with the investment adviser, the person has at least | 2997 |
seven hundred fifty thousand dollars under the management of the | 2998 |
investment adviser. | 2999 |
(2) The investment adviser reasonably believes either of the | 3000 |
following at the time the investment advisory contract is entered | 3001 |
into with the person: | 3002 |
(a) The person has a net worth, together with assets held | 3003 |
jointly with a spouse, of more than one million five hundred | 3004 |
thousand dollars. | 3005 |
(b) The person is a qualified purchaser as defined in | 3006 |
division (FF) of this section. | 3007 |
(3) Immediately prior to entering into an investment advisory | 3008 |
contract with the investment adviser, the person is either of the | 3009 |
following: | 3010 |
(a) An executive officer, director, trustee, general partner, | 3011 |
or person serving in a similar capacity, of the investment | 3012 |
adviser; | 3013 |
(b) An employee of the investment adviser, other than an | 3014 |
employee performing solely clerical, secretarial, or | 3015 |
administrative functions or duties for the investment adviser, | 3016 |
which employee, in connection with the employee's regular | 3017 |
functions or duties, participates in the investment activities of | 3018 |
the investment adviser, provided that, for at least twelve months, | 3019 |
the employee has been performing such nonclerical, nonsecretarial, | 3020 |
or nonadministrative functions or duties for or on behalf of the | 3021 |
investment adviser or performing substantially similar functions | 3022 |
or duties for or on behalf of another company. | 3023 |
If subsequent to March 18, 1999, amendments are enacted or | 3024 |
adopted defining "excepted person" for purposes of the Investment | 3025 |
Advisers Act of 1940 or additional rules or regulations are | 3026 |
promulgated by the securities and exchange commission regarding | 3027 |
the definition of "excepted person" for purposes of the Investment | 3028 |
Advisers Act of 1940, the division of securities shall, by rule, | 3029 |
adopt the substance of the amendments, rules, or regulations, | 3030 |
unless the division finds that the amendments, rules, or | 3031 |
regulations are not necessary for the protection of investors or | 3032 |
in the public interest. | 3033 |
(FF)(1) "Qualified purchaser" means either of the following: | 3034 |
(a) A natural person who owns not less than five million | 3035 |
dollars in investments as defined by rule by the division of | 3036 |
securities; | 3037 |
(b) A natural person, acting for the person's own account or | 3038 |
accounts of other qualified purchasers, who in the aggregate owns | 3039 |
and invests on a discretionary basis, not less than twenty-five | 3040 |
million dollars in investments as defined by rule by the division | 3041 |
of securities. | 3042 |
(2) If subsequent to March 18, 1999, amendments are enacted | 3043 |
or adopted defining "qualified purchaser" for purposes of the | 3044 |
Investment Advisers Act of 1940 or additional rules or regulations | 3045 |
are promulgated by the securities and exchange commission | 3046 |
regarding the definition of "qualified purchaser" for purposes of | 3047 |
the Investment Advisers Act of 1940, the division of securities | 3048 |
shall, by rule, adopt the amendments, rules, or regulations, | 3049 |
unless the division finds that the amendments, rules, or | 3050 |
regulations are not necessary for the protection of investors or | 3051 |
in the public interest. | 3052 |
(GG)(1) "Purchase" has the full meaning of "purchase" as | 3053 |
applied by or accepted in courts of law or equity and includes | 3054 |
every acquisition of, or attempt to acquire, a security or an | 3055 |
interest in a security. "Purchase" also includes a contract to | 3056 |
purchase, an exchange, an attempt to purchase, an option to | 3057 |
purchase, a solicitation of a purchase, a solicitation of an offer | 3058 |
to sell, a subscription, or an offer to purchase, directly or | 3059 |
indirectly, by agent, circular, pamphlet, advertisement, or | 3060 |
otherwise. | 3061 |
(2) "Purchase" means any act by which a purchase is made. | 3062 |
(3) Any security given with, or as a bonus on account of, any | 3063 |
purchase of securities is conclusively presumed to constitute a | 3064 |
part of the subject of that purchase. | 3065 |
(HH) "Life settlement interest" means the entire interest or | 3066 |
any fractional interest in an insurance policy or certificate of | 3067 |
insurance, or in an insurance benefit under such a policy or | 3068 |
certificate, that is the subject of a life settlement contract. | 3069 |
For purposes of this division, "life settlement contract" | 3070 |
means an agreement for the purchase, sale, assignment, transfer, | 3071 |
devise, or bequest of any portion of the death benefit or | 3072 |
ownership of any life insurance policy or contract, in return for | 3073 |
consideration or any other thing of value that is less than the | 3074 |
expected death benefit of the life insurance policy or contract. | 3075 |
"Life settlement contract" includes a viatical settlement contract | 3076 |
as defined in section 3916.01 of the Revised Code, but does not | 3077 |
include any of the following: | 3078 |
(1) A loan by an insurer under the terms of a life insurance | 3079 |
policy, including, but not limited to, a loan secured by the cash | 3080 |
value of the policy; | 3081 |
(2) An agreement with a bank that takes an assignment of a | 3082 |
life insurance policy as collateral for a loan; | 3083 |
(3) The provision of accelerated benefits as defined in | 3084 |
section 3915.21 of the Revised Code; | 3085 |
(4) Any agreement between an insurer and a reinsurer; | 3086 |
(5) An agreement by an individual to purchase an existing | 3087 |
life insurance policy or contract from the original owner of the | 3088 |
policy or contract, if the individual does not enter into more | 3089 |
than one life settlement contract per calendar year; | 3090 |
(6) The initial purchase of an insurance policy or | 3091 |
certificate of insurance from its owner by a viatical settlement | 3092 |
provider, as defined in section 3916.01 of the Revised Code, that | 3093 |
is licensed under Chapter 3916. of the Revised Code. | 3094 |
(II) "State retirement system" means the public employees | 3095 |
retirement system, Ohio police and fire pension fund, state | 3096 |
teachers retirement system, school employees retirement system, | 3097 |
and state highway patrol retirement system. | 3098 |
(JJ) "State retirement system investment officer" means an | 3099 |
individual employed by a state retirement system as a chief | 3100 |
investment officer, assistant financial officer, or the person in | 3101 |
charge of a class of assets. | 3102 |
Sec. 1707.03. (A) As used in this section, "exempt" means | 3103 |
that, except in the case of securities the right to buy, sell, or | 3104 |
deal in which has been suspended or revoked under an existing | 3105 |
order of the division of securities under section 1707.13 of the | 3106 |
Revised Code or under a cease and desist order under division | 3107 |
3108 | |
securities may be carried on and completed without compliance with | 3109 |
sections 1707.08 to 1707.11 of the Revised Code. | 3110 |
(B) A sale of securities made by or on behalf of a bona fide | 3111 |
owner, neither the issuer nor a dealer, is exempt if the sale is | 3112 |
made in good faith and not for the purpose of avoiding this | 3113 |
chapter and is not made in the course of repeated and successive | 3114 |
transactions of a similar character. Any sale of securities over a | 3115 |
stock exchange that is lawfully conducted in this state and | 3116 |
regularly open for public patronage and that has been established | 3117 |
and operated for a period of at least five years prior to the sale | 3118 |
at a commission not exceeding the commission regularly charged in | 3119 |
such transactions also is exempt. | 3120 |
(C) The sale of securities by executors, administrators, | 3121 |
receivers, trustees, or anyone acting in a fiduciary capacity is | 3122 |
exempt, where such relationship was created by law, by a will, or | 3123 |
by judicial authority, and where such sales are subject to | 3124 |
approval by, or are made in pursuance to authority granted by, any | 3125 |
court of competent jurisdiction or are otherwise authorized and | 3126 |
lawfully made by such fiduciary. | 3127 |
(D) A sale to the issuer, to a dealer, or to an institutional | 3128 |
investor is exempt. | 3129 |
(E) A sale in good faith, and not for the purpose of avoiding | 3130 |
this chapter, by a pledgee of a security pledged for a bona fide | 3131 |
debt is exempt. | 3132 |
(F) The sale at public auction by a corporation of shares of | 3133 |
its stock because of delinquency in payment for the shares is | 3134 |
exempt. | 3135 |
(G)(1) The giving of any conversion right with, or on account | 3136 |
of the purchase of, any security that is exempt, is the subject | 3137 |
matter of an exempt transaction, has been registered by | 3138 |
description, by coordination, or by qualification, or is the | 3139 |
subject matter of a transaction that has been registered by | 3140 |
description is exempt. | 3141 |
(2) The giving of any subscription right, warrant, or option | 3142 |
to purchase a security or right to receive a security upon | 3143 |
exchange, which security is exempt at the time the right, warrant, | 3144 |
or option to purchase or right to receive is given, is the subject | 3145 |
matter of an exempt transaction, is registered by description, by | 3146 |
coordination, or by qualification, or is the subject matter of a | 3147 |
transaction that has been registered by description is exempt. | 3148 |
(3) The giving of any subscription right or any warrant or | 3149 |
option to purchase a security, which right, warrant, or option | 3150 |
expressly provides that it shall not be exercisable except for a | 3151 |
security that at the time of the exercise is exempt, is the | 3152 |
subject matter of an exempt transaction, is registered by | 3153 |
description, by coordination, or by qualification, or at such time | 3154 |
is the subject matter of a transaction that has been registered by | 3155 |
description is exempt. | 3156 |
(H) The sale of notes, bonds, or other evidences of | 3157 |
indebtedness that are secured by a mortgage lien upon real estate, | 3158 |
leasehold estate other than oil, gas, or mining leasehold, or | 3159 |
tangible personal property, or which evidence of indebtedness is | 3160 |
due under or based upon a conditional-sale contract, if all such | 3161 |
notes, bonds, or other evidences of indebtedness are sold to a | 3162 |
single purchaser at a single sale, is exempt. | 3163 |
(I) The delivery of securities by the issuer on the exercise | 3164 |
of conversion rights, the sale of securities by the issuer on | 3165 |
exercise of subscription rights or of warrants or options to | 3166 |
purchase securities, the delivery of voting-trust certificates for | 3167 |
securities deposited under a voting-trust agreement, the delivery | 3168 |
of deposited securities on surrender of voting-trust certificates, | 3169 |
and the delivery of final certificates on surrender of interim | 3170 |
certificates are exempt; but the sale of securities on exercise of | 3171 |
subscription rights, warrants, or options is not an exempt | 3172 |
transaction unless those rights, warrants, or options when granted | 3173 |
were the subject matter of an exempt transaction under division | 3174 |
(G) of this section or were registered by description, by | 3175 |
coordination, or by qualification. | 3176 |
(J) The sale of securities by a bank, savings and loan | 3177 |
association, savings bank, or credit union organized under the | 3178 |
laws of the United States or of this state is exempt if at a | 3179 |
profit to that seller of not more than two per cent of the total | 3180 |
sale price of the securities. | 3181 |
(K)(1) The distribution by a corporation of its securities to | 3182 |
its security holders as a share dividend or other distribution out | 3183 |
of earnings or surplus is exempt. | 3184 |
(2) The exchange or distribution by the issuer of any of its | 3185 |
securities or of the securities of any of the issuer's wholly | 3186 |
owned subsidiaries exclusively with or to its existing security | 3187 |
holders, if no commission or other remuneration is given directly | 3188 |
or indirectly for soliciting the exchange, is exempt. | 3189 |
(3) The sale of preorganization subscriptions for shares of | 3190 |
stock of a corporation prior to the incorporation of the | 3191 |
corporation is exempt, when the sale is evidenced by a written | 3192 |
agreement, no remuneration is given, or promised, directly or | 3193 |
indirectly, for or in connection with the sale of those | 3194 |
securities, and no consideration is received, directly or | 3195 |
indirectly, by any person from the purchasers of those securities | 3196 |
until registration by qualification, by coordination, or by | 3197 |
description of those securities is made under this chapter. | 3198 |
(L) The issuance of securities in exchange for one or more | 3199 |
bona fide outstanding securities, claims, or property interests, | 3200 |
not including securities sold for a consideration payable in whole | 3201 |
or in part in cash, under a plan of reorganization, | 3202 |
recapitalization, or refinancing approved by a court pursuant to | 3203 |
the Bankruptcy Act of the United States or to any other federal | 3204 |
act giving any federal court jurisdiction over such plan of | 3205 |
reorganization, or under a plan of reorganization approved by a | 3206 |
court of competent jurisdiction of any state of the United States | 3207 |
is exempt. As used in this division, "reorganization," | 3208 |
"recapitalization," and "refinancing" have the same meanings as in | 3209 |
section 1707.04 of the Revised Code. | 3210 |
(M) A sale by a licensed dealer, acting either as principal | 3211 |
or as agent, of securities issued and outstanding before the sale | 3212 |
is exempt, unless the sale is of one or more of the following: | 3213 |
(1) Securities constituting the whole or a part of an unsold | 3214 |
allotment to or subscription by a dealer as an underwriter or | 3215 |
other participant in the distribution of those securities by the | 3216 |
issuer, whether that distribution is direct or through an | 3217 |
underwriter, provided that, if the issuer is such by reason of | 3218 |
owning one-fourth or more of those securities, the dealer has | 3219 |
knowledge of this fact or reasonable cause to believe this fact; | 3220 |
(2) Any class of shares issued by a corporation when the | 3221 |
number of beneficial owners of that class is less than | 3222 |
twenty-five, with the record owner of securities being deemed the | 3223 |
beneficial owner for this purpose, in the absence of actual | 3224 |
knowledge to the contrary; | 3225 |
(3) Securities that within one year were purchased outside | 3226 |
this state or within one year were transported into this state, if | 3227 |
the dealer has knowledge or reasonable cause to believe, before | 3228 |
the sale of those securities, that within one year they were | 3229 |
purchased outside this state or within one year were transported | 3230 |
into this state; but such a sale of those securities is exempt if | 3231 |
any of the following occurs: | 3232 |
(a) A recognized securities manual contains the names of the | 3233 |
issuer's officers and directors, a balance sheet of the issuer as | 3234 |
of a date within eighteen months, and a profit and loss statement | 3235 |
for either the fiscal year preceding that date or the most recent | 3236 |
year of operations; | 3237 |
(b) Those securities, or securities of the same class, within | 3238 |
one year were registered or qualified under section 1707.09 or | 3239 |
1707.091 of the Revised Code, and that registration or | 3240 |
qualification is in full force and effect; | 3241 |
(c) The sale is made by a licensed dealer on behalf of the | 3242 |
bona fide owner of those securities in accordance with division | 3243 |
(B) of this section; | 3244 |
(d) Those securities were transported into Ohio in a | 3245 |
transaction of the type described in division (L), (K), or (I) of | 3246 |
this section, or in a transaction registered under division (A) of | 3247 |
section 1707.06 of the Revised Code. | 3248 |
(N) For the purpose of this division and division (M) of this | 3249 |
section, "underwriter" means any person who has purchased from an | 3250 |
issuer with a view to, or sells for an issuer in connection with, | 3251 |
the distribution of any security, or who participates directly or | 3252 |
indirectly in any such undertaking or in the underwriting thereof, | 3253 |
but "underwriter" does not include a person whose interest is | 3254 |
limited to a discount, commission, or profit from the underwriter | 3255 |
or from a dealer that is not in excess of the customary | 3256 |
distributors' or sellers' discount, commission, or profit; and | 3257 |
"issuer" includes any person or any group of persons acting in | 3258 |
concert in the sale of such securities, owning beneficially | 3259 |
one-fourth or more of the outstanding securities of the class | 3260 |
involved in the transactions in question, with the record owner of | 3261 |
securities being deemed the beneficial owner for this purpose, in | 3262 |
the absence of actual knowledge to the contrary. | 3263 |
(O)(1) The sale of any equity security is exempt if all the | 3264 |
following conditions are satisfied: | 3265 |
(a) The sale is by the issuer of the security. | 3266 |
(b) The total number of purchasers in this state of all | 3267 |
securities issued or sold by the issuer in reliance upon this | 3268 |
exemption during the period of one year ending with the date of | 3269 |
the sale does not exceed ten. A sale of securities registered | 3270 |
under this chapter or sold pursuant to an exemption under this | 3271 |
chapter other than this exemption shall not be integrated with a | 3272 |
sale pursuant to this exemption in computing the number of | 3273 |
purchasers under this exemption. | 3274 |
(c) No advertisement, article, notice, or other communication | 3275 |
published in any newspaper, magazine, or similar medium or | 3276 |
broadcast over television or radio is used in connection with the | 3277 |
sale, but the use of an offering circular or other communication | 3278 |
delivered by the issuer to selected individuals does not destroy | 3279 |
this exemption. | 3280 |
(d) The issuer reasonably believes after reasonable | 3281 |
investigation that the purchaser is purchasing for investment. | 3282 |
(e) The aggregate commission, discount, and other | 3283 |
remuneration, excluding legal, accounting, and printing fees, paid | 3284 |
or given directly or indirectly does not exceed ten per cent of | 3285 |
the initial offering price. | 3286 |
(f) Any such commission, discount, or other remuneration for | 3287 |
sales in this state is paid or given only to dealers or | 3288 |
salespersons registered pursuant to this chapter. | 3289 |
(2) For the purposes of division (O)(1) of this section, each | 3290 |
of the following is deemed to be a single purchaser of a security: | 3291 |
husband and wife, a child and its parent or guardian when the | 3292 |
parent or guardian holds the security for the benefit of the | 3293 |
child, a corporation, a limited liability company, a partnership, | 3294 |
an association or other unincorporated entity, a joint-stock | 3295 |
company, or a trust, but only if the corporation, limited | 3296 |
liability company, partnership, association, entity, joint-stock | 3297 |
company, or trust was not formed for the purpose of purchasing the | 3298 |
security. | 3299 |
(3) As used in division (O)(1) of this section, "equity | 3300 |
security" means any stock or similar security of a corporation or | 3301 |
any membership interest in a limited liability company; or any | 3302 |
security convertible, with or without consideration, into such a | 3303 |
security, or carrying any warrant or right to subscribe to or | 3304 |
purchase such a security; or any such warrant or right; or any | 3305 |
other security that the division considers necessary or | 3306 |
appropriate, by such rules as it may prescribe in the public | 3307 |
interest or for the protection of investors, to treat as an equity | 3308 |
security. | 3309 |
(P) The sale of securities representing interests in or under | 3310 |
profit-sharing or participation agreements relating to oil or gas | 3311 |
wells located in this state, or representing interests in or under | 3312 |
oil or gas leases of real estate situated in this state, is exempt | 3313 |
if the securities are issued by an individual, partnership, | 3314 |
limited partnership, partnership association, syndicate, pool, | 3315 |
trust or trust fund, or other unincorporated association and if | 3316 |
each of the following conditions is complied with: | 3317 |
(1) The beneficial owners of the securities do not, and will | 3318 |
not after the sale, exceed five natural persons; | 3319 |
(2) The securities constitute or represent interests in not | 3320 |
more than one oil or gas well; | 3321 |
(3) A certificate or other instrument in writing is furnished | 3322 |
to each purchaser of the securities at or before the consummation | 3323 |
of the sale, disclosing the maximum commission, compensation for | 3324 |
services, cost of lease, and expenses with respect to the sale of | 3325 |
such interests and with respect to the promotion, development, and | 3326 |
management of the oil or gas well, and the total of that | 3327 |
commission, compensation, costs, and expenses does not exceed | 3328 |
twenty-five per cent of the aggregate interests in the oil or gas | 3329 |
well, exclusive of any landowner's rental or royalty; | 3330 |
(4) The sale is made in good faith and not for the purpose of | 3331 |
avoiding this chapter. | 3332 |
(Q) The sale of any security is exempt if all of the | 3333 |
following conditions are satisfied: | 3334 |
(1) The provisions of section 5 of the Securities Act of 1933 | 3335 |
do not apply to the sale by reason of an exemption under section 4 | 3336 |
(2) of that act. | 3337 |
(2) The aggregate commission, discount, and other | 3338 |
remuneration, excluding legal, accounting, and printing fees, paid | 3339 |
or given directly or indirectly does not exceed ten per cent of | 3340 |
the initial offering price. | 3341 |
(3) Any such commission, discount, or other remuneration for | 3342 |
sales in this state is paid or given only to dealers or | 3343 |
salespersons registered under this chapter. | 3344 |
(4) The issuer or dealer files with the division of | 3345 |
securities, not later than sixty days after the sale, a report | 3346 |
setting forth the name and address of the issuer, the total amount | 3347 |
of the securities sold under this division, the number of persons | 3348 |
to whom the securities were sold, the price at which the | 3349 |
securities were sold, and the commissions or discounts paid or | 3350 |
given. | 3351 |
(5) The issuer pays a filing fee of one hundred dollars for | 3352 |
the first filing and fifty dollars for every subsequent filing | 3353 |
during each calendar year. | 3354 |
(R) A sale of a money order, travelers' check, or other | 3355 |
instrument for the transmission of money by a person qualified to | 3356 |
engage in such business under section 1109.60 or Chapter 1315. of | 3357 |
the Revised Code is exempt. | 3358 |
(S) A sale by a licensed dealer of securities that are in the | 3359 |
process of registration under the Securities Act of 1933, unless | 3360 |
exempt under that act, and that are in the process of | 3361 |
registration, if registration is required under this chapter, is | 3362 |
exempt, provided that no sale of that nature shall be consummated | 3363 |
prior to the registration by description or qualification of the | 3364 |
securities. | 3365 |
(T) The execution by a licensed dealer of orders for the | 3366 |
purchase of any security is exempt, provided that the dealer acts | 3367 |
only as agent for the purchaser, has made no solicitation of the | 3368 |
order to purchase the security, has no interest in the | 3369 |
distribution of the security, and delivers to the purchaser | 3370 |
written confirmation of the transaction that clearly itemizes the | 3371 |
dealer's commission. "Solicitation," as used in this division, | 3372 |
means solicitation of the order for the specific security | 3373 |
purchased and does not include general solicitations or | 3374 |
advertisements of any kind. | 3375 |
(U) The sale insofar as the security holders of a person are | 3376 |
concerned, where, pursuant to statutory provisions of the | 3377 |
jurisdiction under which that person is organized or pursuant to | 3378 |
provisions contained in its articles of incorporation, certificate | 3379 |
of incorporation, partnership agreement, declaration of trust, | 3380 |
trust indenture, or similar controlling instrument, there is | 3381 |
submitted to the security holders, for their vote or consent, (1) | 3382 |
a plan or agreement for a reclassification of securities of that | 3383 |
person that involves the substitution of a security of that person | 3384 |
for another security of that person, (2) a plan or agreement of | 3385 |
merger or consolidation or a similar plan or agreement of | 3386 |
acquisition in which the securities of that person held by the | 3387 |
security holders will become or be exchanged for securities of any | 3388 |
other person, or (3) a plan or agreement for a combination as | 3389 |
defined in division (Q) of section 1701.01 of the Revised Code or | 3390 |
a similar plan or agreement for the transfer of assets of that | 3391 |
person to another person in consideration of the issuance of | 3392 |
securities of any person, is exempt if, with respect to any of the | 3393 |
foregoing transactions, either of the following conditions is | 3394 |
satisfied: | 3395 |
(a) The securities to be issued to the security holders are | 3396 |
effectively registered under sections 6 to 8 of the Securities Act | 3397 |
of 1933 and offered and sold in compliance with section 5 of that | 3398 |
act; | 3399 |
(b) At least twenty days prior to the date on which a meeting | 3400 |
of the security holders is held or the earliest date on which | 3401 |
corporate action may be taken when no meeting is held, there is | 3402 |
submitted to the security holders, by that person, or by the | 3403 |
person whose securities are to be issued in the transaction, | 3404 |
information substantially equivalent to the information that would | 3405 |
be required to be included in a proxy statement or information | 3406 |
statement prepared by or on behalf of the management of an issuer | 3407 |
subject to section 14(a) or 14(c) of the Securities Exchange Act | 3408 |
of 1934. | 3409 |
(V) The sale of any security is exempt if the division by | 3410 |
rule finds that registration is not necessary or appropriate in | 3411 |
the public interest or for the protection of investors. | 3412 |
(W) Any offer or sale of securities made in reliance on the | 3413 |
exemptions provided by Rule 505 of Regulation D made pursuant to | 3414 |
the Securities Act of 1933 and the conditions and definitions | 3415 |
provided by Rules 501 to 503 thereunder is exempt if the offer or | 3416 |
sale satisfies all of the following conditions: | 3417 |
(1) No commission or other remuneration is given, directly or | 3418 |
indirectly, to any person for soliciting or selling to any person | 3419 |
in this state in reliance on the exemption under this division, | 3420 |
except to dealers licensed in this state. | 3421 |
(2)(a) Unless the cause for disqualification is waived under | 3422 |
division (W)(2)(b) of this section, no exemption under this | 3423 |
section is available for the securities of an issuer unless the | 3424 |
issuer did not know and in the exercise of reasonable care could | 3425 |
not have known that any of the following applies to any of the | 3426 |
persons described in Rule 262(a) to (c) of Regulation A under the | 3427 |
Securities Act of 1933: | 3428 |
(i) The person has filed an application for registration or | 3429 |
qualification that is the subject of an effective order entered | 3430 |
against the issuer, its officers, directors, general partners, | 3431 |
controlling persons or affiliates thereof, pursuant to the law of | 3432 |
any state within five years before the filing of a notice required | 3433 |
under division (W)(3) of this section denying effectiveness to, or | 3434 |
suspending or revoking the effectiveness of, the registration | 3435 |
statement. | 3436 |
(ii) The person has been convicted of any offense in | 3437 |
connection with the offer, sale, or purchase of any security or | 3438 |
franchise, or any felony involving fraud or deceit, including, but | 3439 |
not limited to, forgery, embezzlement, fraud, theft, or conspiracy | 3440 |
to defraud. | 3441 |
(iii) The person is subject to an effective administrative | 3442 |
order or judgment that was entered by a state securities | 3443 |
administrator within five years before the filing of a notice | 3444 |
required under division (W)(3) of this section and that prohibits, | 3445 |
denies, or revokes the use of any exemption from securities | 3446 |
registration, prohibits the transaction of business by the person | 3447 |
as a dealer, or is based on fraud, deceit, an untrue statement of | 3448 |
a material fact, or an omission to state a material fact. | 3449 |
(iv) The person is subject to any order, judgment, or decree | 3450 |
of any court entered within five years before the filing of a | 3451 |
notice required under division (W)(3) of this section, | 3452 |
temporarily, preliminarily, or permanently restraining or | 3453 |
enjoining the person from engaging in or continuing any conduct or | 3454 |
practice in connection with the offer, sale, or purchase of any | 3455 |
security, or the making of any false filing with any state. | 3456 |
(b)(i) Any disqualification under this division involving a | 3457 |
dealer may be waived if the dealer is or continues to be licensed | 3458 |
in this state as a dealer after notifying the commissioner of the | 3459 |
act or event causing disqualification. | 3460 |
(ii) The commissioner may waive any disqualification under | 3461 |
this paragraph upon a showing of good cause that it is not | 3462 |
necessary under the circumstances that use of the exemption be | 3463 |
denied. | 3464 |
(3) Not later than five business days before the earlier of | 3465 |
the date on which the first use of an offering document or the | 3466 |
first sale is made in this state in reliance on the exemption | 3467 |
under this division, there is filed with the commissioner a notice | 3468 |
comprised of offering material in compliance with the requirements | 3469 |
of Rule 502 of Regulation D under the Securities Act of 1933 and a | 3470 |
fee of one hundred dollars. Material amendments to the offering | 3471 |
document shall be filed with the commissioner not later than the | 3472 |
date of their first use in this state. | 3473 |
(4) The aggregate commission, discount, and other | 3474 |
remuneration paid or given, directly or indirectly, does not | 3475 |
exceed twelve per cent of the initial offering price, excluding | 3476 |
legal, accounting, and printing fees. | 3477 |
(X) Any offer or sale of securities made in reliance on the | 3478 |
exemption provided in Rule 506 of Regulation D under the | 3479 |
Securities Act of 1933, and in accordance with Rules 501 to 503 of | 3480 |
Regulation D under the Securities Act of 1933, is exempt provided | 3481 |
that all of the following apply: | 3482 |
(1) The issuer makes a notice filing with the division on | 3483 |
form D of the securities and exchange commission within fifteen | 3484 |
days of the first sale in this state; | 3485 |
(2) Any commission, discount, or other remuneration for sales | 3486 |
of securities in this state is paid or given only to dealers or | 3487 |
salespersons licensed under this chapter; | 3488 |
(3) The issuer pays a filing fee of one hundred dollars to | 3489 |
the division; however, no filing fee shall be required to file | 3490 |
amendments to the form D of the securities and exchange | 3491 |
commission. | 3492 |
(Y) The offer or sale of securities by an issuer is exempt | 3493 |
provided that all of the following apply: | 3494 |
(1) The sale of securities is made only to persons who are, | 3495 |
or who the issuer reasonably believes are, accredited investors as | 3496 |
defined in Rule 501 of Regulation D under the Securities Act of | 3497 |
1933. | 3498 |
(2) The issuer reasonably believes that all purchasers are | 3499 |
purchasing for investment and not with a view to or for sale in | 3500 |
connection with a distribution of the security. Any resale of a | 3501 |
security sold in reliance on this exemption within twelve months | 3502 |
of sale shall be presumed to be with a view to distribution and | 3503 |
not for investment, except a resale to which any of the following | 3504 |
applies: | 3505 |
(a) The resale is pursuant to a registration statement | 3506 |
effective under section 1707.09 or 1707.091 of the Revised Code. | 3507 |
(b) The resale is to an accredited investor, as defined in | 3508 |
Rule 501 of Regulation D under the Securities Act of 1933. | 3509 |
(c) The resale is to an institutional investor pursuant to | 3510 |
the exemptions under division (B) or (D) of this section. | 3511 |
(3) The exemption under this division is not available to an | 3512 |
issuer that is in the development stage and that either has no | 3513 |
specific business plan or purpose or has indicated that its | 3514 |
business plan is to engage in a merger or acquisition with an | 3515 |
unidentified company or companies, or other entities or persons. | 3516 |
(4) The exemption under this division is not available to an | 3517 |
issuer, if the issuer, any of the issuer's predecessors, any | 3518 |
affiliated issuer, any of the issuer's directors, officers, | 3519 |
general partners, or beneficial owners of ten per cent or more of | 3520 |
any class of its equity securities, any of the issuer's promoters | 3521 |
presently connected with the issuer in any capacity, any | 3522 |
underwriter of the securities to be offered, or any partner, | 3523 |
director, or officer of such underwriter: | 3524 |
(a) Within the past five years, has filed a registration | 3525 |
statement that is the subject of a currently effective | 3526 |
registration stop order entered by any state securities | 3527 |
administrator or the securities and exchange commission; | 3528 |
(b) Within the past five years, has been convicted of any | 3529 |
criminal offense in connection with the offer, purchase, or sale | 3530 |
of any security, or involving fraud or deceit; | 3531 |
(c) Is currently subject to any state or federal | 3532 |
administrative enforcement order or judgment, entered within the | 3533 |
past five years, finding fraud or deceit in connection with the | 3534 |
purchase or sale of any security; | 3535 |
(d) Is currently subject to any order, judgment, or decree of | 3536 |
any court of competent jurisdiction, entered within the past five | 3537 |
years, that temporarily, preliminarily, or permanently restrains | 3538 |
or enjoins the party from engaging in or continuing to engage in | 3539 |
any conduct or practice involving fraud or deceit in connection | 3540 |
with the purchase or sale of any security. | 3541 |
(5) Division (Y)(4) of this section is inapplicable if any of | 3542 |
the following applies: | 3543 |
(a) The party subject to the disqualification is licensed or | 3544 |
registered to conduct securities business in the state in which | 3545 |
the order, judgment, or decree creating the disqualification was | 3546 |
entered against the party described in division (Y)(4) of this | 3547 |
section. | 3548 |
(b) Before the first offer is made under this exemption, the | 3549 |
state securities administrator, or the court or regulatory | 3550 |
authority that entered the order, judgment, or decree, waives the | 3551 |
disqualification. | 3552 |
(c) The issuer did not know and, in the exercise of | 3553 |
reasonable care based on reasonable investigation, could not have | 3554 |
known that a disqualification from the exemption existed under | 3555 |
division (Y)(4) of this section. | 3556 |
(6) A general announcement of the proposed offering may be | 3557 |
made by any means; however, the general announcement shall include | 3558 |
only the following information, unless additional information is | 3559 |
specifically permitted by the division by rule: | 3560 |
(a) The name, address, and telephone number of the issuer of | 3561 |
the securities; | 3562 |
(b) The name, a brief description, and price of any security | 3563 |
to be issued; | 3564 |
(c) A brief description of the business of the issuer; | 3565 |
(d) The type, number, and aggregate amount of securities | 3566 |
being offered; | 3567 |
(e) The name, address, and telephone number of the person to | 3568 |
contact for additional information; and | 3569 |
(f) A statement indicating all of the following: | 3570 |
(i) Sales will only be made to accredited investors as | 3571 |
defined in Rule 501 of Regulation D under the Securities Act of | 3572 |
1933; | 3573 |
(ii) No money or other consideration is being solicited or | 3574 |
will be accepted by way of this general announcement; | 3575 |
(iii) The securities have not been registered with or | 3576 |
approved by any state securities administrator or the securities | 3577 |
and exchange commission and are being offered and sold pursuant to | 3578 |
an exemption from registration. | 3579 |
(7) The issuer, in connection with an offer, may provide | 3580 |
information in addition to the general announcement described in | 3581 |
division (Y)(6) of this section, provided that either of the | 3582 |
following applies: | 3583 |
(a) The information is delivered through an electronic | 3584 |
database that is restricted to persons that are accredited | 3585 |
investors as defined in Rule 501 of Regulation D under the | 3586 |
Securities Act of 1933. | 3587 |
(b) The information is delivered after the issuer reasonably | 3588 |
believes that the prospective purchaser is an accredited investor | 3589 |
as defined in Rule 501 of Regulation D under the Securities Act of | 3590 |
1933. | 3591 |
(8) No telephone solicitation shall be done, unless prior to | 3592 |
placing the telephone call, the issuer reasonably believes that | 3593 |
the prospective purchaser to be solicited is an accredited | 3594 |
investor as defined in Rule 501 of Regulation D under the | 3595 |
Securities Act of 1933. | 3596 |
(9) Dissemination of the general announcement described in | 3597 |
division (Y)(6) of this section to persons that are not accredited | 3598 |
investors, as defined in Rule 501 of Regulation D under the | 3599 |
Securities Act of 1933, does not disqualify the issuer from | 3600 |
claiming an exemption under this division. | 3601 |
(10) The issuer shall file with the division notice of the | 3602 |
offering of securities within fifteen days after notice of the | 3603 |
offering is made or a general announcement is made in this state. | 3604 |
The filing shall be on forms adopted by the division and shall | 3605 |
include a copy of the general announcement, if one is made | 3606 |
regarding the proposed offering, and copies of any offering | 3607 |
materials, circulars, or prospectuses. A filing fee of one hundred | 3608 |
dollars also shall be included. | 3609 |
Sec. 1707.162. (A) No person shall act as a state retirement | 3610 |
system investment officer unless the person is licensed as a state | 3611 |
retirement system investment officer by the division of | 3612 |
securities. | 3613 |
(B) No state retirement system investment officer shall act | 3614 |
as a dealer, salesperson, investment advisor, or investment | 3615 |
advisor representative. | 3616 |
Sec. 1707.163. (A) Application for a state retirement system | 3617 |
investment officer's license shall be made in accordance with this | 3618 |
section by filing with the division of securities the information, | 3619 |
materials, and forms specified in rules adopted by the division. | 3620 |
(B)(1) The division may investigate any applicant for a | 3621 |
license and may require any additional information as it considers | 3622 |
necessary to determine the applicant's business repute and | 3623 |
qualifications to act as an investment officer. | 3624 |
(2) If the application for a state retirement system | 3625 |
investment officer's license involves investigation outside of | 3626 |
this state, the applicant may be required by the division to | 3627 |
advance sufficient funds to pay any of the actual expenses of the | 3628 |
investigation. The division shall furnish the applicant with an | 3629 |
itemized statement of the expenses the applicant is required to | 3630 |
pay. | 3631 |
(C) The division shall by rule require an applicant for a | 3632 |
state retirement system investment officer's license to pass an | 3633 |
examination designated by the division or achieve a specified | 3634 |
professional designation unless the applicant meets both of the | 3635 |
following requirements: | 3636 |
(1) Acts as a state retirement system investment officer on | 3637 |
the effective date of this section; | 3638 |
(2) Has experience or equivalent education acceptable to the | 3639 |
division. | 3640 |
(D) If the division finds that the applicant is of good | 3641 |
business repute, appears to be qualified to act as a state | 3642 |
retirement system investment officer, and has complied with this | 3643 |
chapter and rules adopted under this chapter by the division, the | 3644 |
division, on payment of the fees prescribed by division (B) of | 3645 |
section 1707.17 of the Revised Code, shall issue to the applicant | 3646 |
a license authorizing the applicant to act as a state retirement | 3647 |
system investment officer. | 3648 |
Sec. 1707.17. (A)(1) The license of every dealer in and | 3649 |
salesperson of securities shall expire on the thirty-first day of | 3650 |
December of each year, and may be renewed upon the filing with the | 3651 |
division of securities of an application for renewal, and the | 3652 |
payment of the fee prescribed in this section. The division shall | 3653 |
give notice, without unreasonable delay, of its action on any | 3654 |
application for renewal of a dealer's or salesperson's license. | 3655 |
(2) The license of every investment adviser and investment | 3656 |
adviser representative licensed under section 1707.141 or 1707.161 | 3657 |
of the Revised Code shall expire on the thirty-first day of | 3658 |
December of each year. The licenses may be renewed upon the filing | 3659 |
with the division of an application for renewal, and the payment | 3660 |
of the fee prescribed in division (B) of this section. The | 3661 |
division shall give notice, without unreasonable delay, of its | 3662 |
action on any application for renewal. | 3663 |
(3) An investment adviser required to make a notice filing | 3664 |
under division (B) of section 1707.141 of the Revised Code | 3665 |
annually shall file with the division the notice filing and the | 3666 |
fee prescribed in division (B) of this section, no later than the | 3667 |
thirty-first day of December of each year. | 3668 |
(4) The license of every state retirement system investment | 3669 |
officer licensed under section 1707.163 of the Revised Code shall | 3670 |
expire on the thirtieth day of June of each year. The licenses may | 3671 |
be renewed on the filing with the division of an application for | 3672 |
renewal, and the payment of the fee prescribed in division (B) of | 3673 |
this section. The division shall give notice, without unreasonable | 3674 |
delay, of its action on any application for renewal. | 3675 |
(B)(1) The fee for each dealer's license, and for each annual | 3676 |
renewal thereof, shall be
one
hundred
dollars.
| 3677 |
3678 | |
3679 |
(2) The fee for each salesperson's license, and for each | 3680 |
annual
renewal thereof, shall be fifty dollars. | 3681 |
3682 | |
3683 |
(3) The fee for each investment adviser's license, and for | 3684 |
each annual renewal thereof, shall be fifty dollars. | 3685 |
(4) The fee for each investment adviser notice filing | 3686 |
required by division (B) of section 1707.141 of the Revised Code | 3687 |
shall be fifty dollars. | 3688 |
(5) The fee for each investment adviser representative's | 3689 |
license, and for each annual renewal thereof, shall be thirty-five | 3690 |
dollars. | 3691 |
(6) The fee for each state retirement system investment | 3692 |
officer's license, and for each annual renewal thereof, shall be | 3693 |
fifty dollars. | 3694 |
(C) A dealer's, salesperson's, investment adviser's, | 3695 |
investment adviser representative's, or state retirement system | 3696 |
investment officer's license may be issued at any time for the | 3697 |
remainder of the calendar year. In that event, the annual fee | 3698 |
shall not be reduced. | 3699 |
Sec. 1707.19. (A) An original license, or a renewal thereof, | 3700 |
applied for by a dealer or salesperson of securities, or by an | 3701 |
investment adviser | 3702 |
state retirement system investment officer, may be refused, and | 3703 |
any such license granted may be suspended and, after notice and | 3704 |
hearing in accordance with Chapter 119. of the Revised Code, may | 3705 |
be revoked, by the division of securities, if the division | 3706 |
determines that the applicant or the licensed dealer, salesperson, | 3707 |
investment adviser, | 3708 |
retirement system investment officer: | 3709 |
(1) Is not of good business repute; | 3710 |
(2) Is conducting an illegitimate or fraudulent business; | 3711 |
(3) Is, in the case of a dealer or investment adviser, | 3712 |
insolvent; | 3713 |
(4) Has knowingly violated any provision of sections 1707.01 | 3714 |
to 1707.45 of the Revised Code, or any regulation or order made | 3715 |
thereunder; | 3716 |
(5) Has knowingly made a false statement of a material fact | 3717 |
or an omission of a material fact in an application for a license, | 3718 |
in a description or application that has been filed, or in any | 3719 |
statement made to the division under such sections; | 3720 |
(6) Has refused to comply with any lawful order or | 3721 |
requirement of the division under section 1707.23 of the Revised | 3722 |
Code; | 3723 |
(7) Has been guilty of any fraudulent act in connection with | 3724 |
the sale of any securities or in connection with acting as an | 3725 |
investment adviser | 3726 |
retirement system investment officer; | 3727 |
(8) Conducts business in purchasing or selling securities at | 3728 |
such variations from the existing market as in the light of all | 3729 |
the circumstances are unconscionable; | 3730 |
(9) Conducts business in violation of such rules and | 3731 |
regulations as the division prescribes for the protection of | 3732 |
investors, clients, | 3733 |
systems; | 3734 |
(10)(a) Has failed to furnish to the division any information | 3735 |
with respect to the purchases or sales of securities within this | 3736 |
state that may be reasonably requested by the division as | 3737 |
pertinent to the protection of investors in this state. | 3738 |
(b) Has failed to furnish to the division any information | 3739 |
with respect to acting as an investment adviser | 3740 |
adviser representative, or state retirement system investment | 3741 |
officer within this state that may be reasonably requested by the | 3742 |
division. | 3743 |
(B) For the protection of investors and state retirement | 3744 |
systems the division may prescribe reasonable rules defining | 3745 |
fraudulent, evasive, deceptive, or grossly unfair practices or | 3746 |
devices in the purchase or sale of securities. | 3747 |
(C) For the protection of investors, clients, | 3748 |
clients, or state retirement systems the division may prescribe | 3749 |
reasonable rules regarding the acts and practices of an investment | 3750 |
adviser | 3751 |
retirement system investment officer. | 3752 |
(D) Pending any investigation or hearing provided for in | 3753 |
sections 1707.01 to 1707.45 of the Revised Code, the division may | 3754 |
order the suspension of any dealer's, salesperson's, investment | 3755 |
adviser's, | 3756 |
retirement system investment officer's license by notifying the | 3757 |
party concerned of such suspension and the cause for it. If it is | 3758 |
a salesperson whose license is suspended, the division shall also | 3759 |
notify the dealer employing the salesperson. If it is an | 3760 |
investment adviser representative whose license is suspended, the | 3761 |
division also shall notify the investment adviser with whom the | 3762 |
investment adviser representative is employed or associated. If it | 3763 |
is a state retirement system investment officer whose license is | 3764 |
suspended, the division shall also notify the state retirement | 3765 |
system with whom the state retirement system investment officer is | 3766 |
employed. | 3767 |
(E)(1) The suspension or revocation of the dealer's license | 3768 |
suspends the licenses of all the dealer's salespersons. | 3769 |
(2) The suspension or revocation of the investment adviser's | 3770 |
license suspends the licenses of all the investment adviser's | 3771 |
investment adviser representatives. The suspension or revocation | 3772 |
of an investment adviser's registration under section 203 of the | 3773 |
"Investment Advisers Act of 1940," 15 U.S.C. 80b-3, suspends the | 3774 |
licenses of all the investment adviser's investment adviser | 3775 |
representatives. | 3776 |
(F) It is sufficient cause for refusal, revocation, or | 3777 |
suspension of the license in case of a partnership, partnership | 3778 |
association, corporation, or unincorporated association if any | 3779 |
general partner of the partnership, manager of the partnership | 3780 |
association, or executive officer of the corporation or | 3781 |
unincorporated association is not of good business repute or has | 3782 |
been guilty of any act or omission which would be cause for | 3783 |
refusing or revoking the license of an individual dealer, | 3784 |
salesperson, investment adviser, or investment adviser | 3785 |
representative. | 3786 |
Sec. 1707.20. (A) The division of securities may adopt, | 3787 |
amend, and rescind such rules, forms, and orders as are necessary | 3788 |
to carry out sections 1707.01 to 1707.45 of the Revised Code, | 3789 |
including rules and forms governing registration statements, | 3790 |
applications, and reports, and defining any terms, whether or not | 3791 |
used in sections 1707.01 to 1707.45 of the Revised Code, insofar | 3792 |
as the definitions are not inconsistent with these sections. For | 3793 |
the purpose of rules and forms, the division may classify | 3794 |
securities, persons, and matters within its jurisdiction, and | 3795 |
prescribe different requirements for different classes. | 3796 |
(B) No rule, form, or order may be made, amended, or | 3797 |
rescinded unless the division finds that the action is necessary | 3798 |
or appropriate in the public interest or for the protection of | 3799 |
investors, clients, | 3800 |
systems and consistent with the purposes fairly intended by the | 3801 |
policy and provisions of sections 1707.01 to 1707.45 of the | 3802 |
Revised Code. In prescribing rules and forms and in otherwise | 3803 |
administering sections 1707.01 to 1707.45 of the Revised Code, the | 3804 |
division may cooperate with the securities administrators of the | 3805 |
other states and the securities and exchange commission with a | 3806 |
view of effectuating the policy of this section to achieve maximum | 3807 |
uniformity in the form and content of registration statements, | 3808 |
applications, reports, and overall securities regulation wherever | 3809 |
practicable. | 3810 |
(C) The division may by rule or order prescribe: | 3811 |
(1) The form and content of financial statements required | 3812 |
under sections 1707.01 to 1707.45 of the Revised Code; | 3813 |
(2) The circumstances under which consolidated financial | 3814 |
statements shall be filed; | 3815 |
(3) Whether any required financial statements shall be | 3816 |
certified by independent or certified public accountants. All | 3817 |
financial statements shall be prepared in accordance with | 3818 |
generally accepted accounting practices. | 3819 |
(D) All rules and forms of the division shall be published; | 3820 |
and in addition to fulfilling the requirements of Chapter 119. of | 3821 |
the Revised Code, the division shall prescribe, and shall publish | 3822 |
and make available its rules regarding the sale of securities, the | 3823 |
administration of sections 1707.01 to 1707.45 of the Revised Code, | 3824 |
and the procedure and practice before the division. | 3825 |
(E) No provision of sections 1707.01 to 1707.45 of the | 3826 |
Revised Code imposing any liability applies to any act done or | 3827 |
omitted in good faith in conformity with any rule, form, or order | 3828 |
of the division of securities, notwithstanding that the rule, | 3829 |
form, or order may later be amended or rescinded or be determined | 3830 |
by judicial or other authority to be invalid for any reason, | 3831 |
except that the issuance of an order granting effectiveness to a | 3832 |
registration under section 1707.09 or 1707.091 of the Revised Code | 3833 |
for the purposes of this division shall not be deemed an order | 3834 |
other than as the establishment of the fact of registration. | 3835 |
Sec. 1707.22. Whenever a dealer's, salesperson's, investment | 3836 |
adviser's, | 3837 |
retirement system investment officer's license has been refused, | 3838 |
suspended, or revoked, or a renewal thereof has been denied, by | 3839 |
the division of securities, or whenever the division has refused | 3840 |
to qualify securities or has suspended or revoked the registration | 3841 |
of any particular security by description or by qualification, or | 3842 |
the right to buy, sell, or deal in any particular security whether | 3843 |
it is registered or qualified or exempt, or whether the | 3844 |
transactions in it are registered or exempt, the aggrieved party | 3845 |
may appeal in accordance with Chapter 119. of the Revised Code. | 3846 |
An order sustaining the refusal of the division to grant or | 3847 |
renew a
dealer's,
salesperson's, investment adviser's, | 3848 |
investment adviser representative's, or state retirement system | 3849 |
investment officer's license or to grant qualification of | 3850 |
securities, or an order sustaining the division in suspending or | 3851 |
revoking a dealer's,
salesperson's, investment adviser's, | 3852 |
investment adviser representative's, or state retirement system | 3853 |
investment officer's license, the registration of any particular | 3854 |
security by description or by qualification, or the right to buy, | 3855 |
sell, or deal in any particular security, shall not bar, after ten | 3856 |
days from the order, a new registration by description, or a new | 3857 |
application of the plaintiff for such a license or qualification | 3858 |
or for a withdrawal of a revocation or suspension; nor shall an | 3859 |
order in favor of the plaintiff prevent the division, after proper | 3860 |
notice and hearing, from thereafter revoking or suspending such | 3861 |
license, registration, or right to buy, sell, or deal in a | 3862 |
particular security, for any proper cause which may, after the | 3863 |
order, accrue or be discovered. | 3864 |
Sec. 1707.23. Whenever it appears to the division of | 3865 |
securities, from its files, upon complaint, or otherwise, that any | 3866 |
person has engaged in, is engaged in, or is about to engage in any | 3867 |
practice declared to be illegal or prohibited by this chapter or | 3868 |
rules adopted under this chapter by the division, or defined as | 3869 |
fraudulent in this chapter or rules adopted under this chapter by | 3870 |
the division, or any other deceptive scheme or practice in | 3871 |
connection with the sale of securities, or acting as a dealer, a | 3872 |
salesperson, an investment
adviser | 3873 |
representative, or state retirement system investment officer or | 3874 |
when the division believes it to be in the best interests of the | 3875 |
public and necessary for the protection of investors, the division | 3876 |
may do any of the following: | 3877 |
(A) Require any person to file with it, on such forms as it | 3878 |
prescribes, an original or additional statement or report in | 3879 |
writing, under oath or otherwise, as to any facts or circumstances | 3880 |
concerning the issuance, sale, or offer for sale of securities | 3881 |
within this state by the person, as to the person's acts or | 3882 |
practices as a dealer, a salesperson, an investment adviser | 3883 |
investment adviser representative, or state retirement system | 3884 |
investment officer within this state, and as to other information | 3885 |
as it deems material or relevant thereto; | 3886 |
(B) Examine any investment adviser, investment adviser | 3887 |
representative, state retirement system investment officer, or any | 3888 |
seller, dealer, salesperson, or issuer of any securities, and any | 3889 |
of their agents, employees, partners, officers, directors, | 3890 |
members, or shareholders, wherever located, under oath; and | 3891 |
examine and produce records, books, documents, accounts, and | 3892 |
papers as the division deems material or relevant to the inquiry; | 3893 |
(C) Require the attendance of witnesses, and the production | 3894 |
of books, records, and papers, as are required either by the | 3895 |
division or by any party to a hearing before the division, and for | 3896 |
that purpose issue a subpoena for any witness, or a subpoena duces | 3897 |
tecum to compel the production of any books, records, or papers. | 3898 |
The subpoena shall be served by personal service or by certified | 3899 |
mail, return receipt requested. If the subpoena is returned | 3900 |
because of inability to deliver, or if no return is received | 3901 |
within thirty days of the date of mailing, the subpoena may be | 3902 |
served by ordinary mail. If no return of ordinary mail is received | 3903 |
within thirty days after the date of mailing, service shall be | 3904 |
deemed to have been made. If the subpoena is returned because of | 3905 |
inability to deliver, the division may designate a person or | 3906 |
persons to effect either personal or residence service upon the | 3907 |
witness. The person designated to effect personal or residence | 3908 |
service under this division may be the sheriff of the county in | 3909 |
which the witness resides or may be found or any other duly | 3910 |
designated person. The fees and mileage of the person serving the | 3911 |
subpoena shall be the same as those allowed by the courts of | 3912 |
common pleas in criminal cases, and shall be paid from the funds | 3913 |
of the division. Fees and mileage for the witness shall be the | 3914 |
same as those allowed for witnesses by the courts of common pleas | 3915 |
in criminal cases, and shall be paid from the funds of the | 3916 |
division upon request of the witness following the hearing. | 3917 |
(D) | 3918 |
3919 | |
3920 | |
3921 | |
3922 | |
3923 | |
3924 |
| 3925 |
1707.44 of the Revised Code or rules adopted under those sections | 3926 |
by the division by laying before the prosecuting attorney of the | 3927 |
proper county any evidence of criminality which comes to its | 3928 |
knowledge; and in the event of the neglect or refusal of the | 3929 |
prosecuting attorney to prosecute such violations, or at the | 3930 |
request of the prosecuting attorney, the division shall submit the | 3931 |
evidence to the attorney general, who may proceed in the | 3932 |
prosecution with all the rights, privileges, and powers conferred | 3933 |
by law on prosecuting attorneys, including the power to appear | 3934 |
before grand juries and to interrogate witnesses before such grand | 3935 |
juries. | 3936 |
| 3937 |
division copies of prospectuses, circulars, or advertisements | 3938 |
respecting securities that they publish or generally distribute, | 3939 |
or require any investment advisers immediately to furnish to the | 3940 |
division copies of brochures, advertisements, publications, | 3941 |
analyses, reports, or other writings that they publish or | 3942 |
distribute; | 3943 |
| 3944 |
sale, notices of intention to sell, in respect to all securities | 3945 |
which are not exempt under section 1707.02 of the Revised Code, or | 3946 |
which are sold in transactions not exempt under section 1707.03 or | 3947 |
1707.04 of the Revised Code; | 3948 |
| 3949 |
all persons affected an order requiring the person or persons to | 3950 |
cease and desist from the acts or practices appearing to the | 3951 |
division to constitute violations of this chapter or rules adopted | 3952 |
under this chapter by the division. The order shall state | 3953 |
specifically the section or sections of this chapter or the rule | 3954 |
or rules adopted under this chapter by the division that appear to | 3955 |
the division to have been violated and the facts constituting the | 3956 |
violation. If after the issuance of the order it appears to the | 3957 |
division that any person or persons affected by the order have | 3958 |
engaged in any act or practice from which the person or persons | 3959 |
shall have been required, by the order, to cease and desist, the | 3960 |
director of commerce may apply to the court of common pleas of any | 3961 |
county for, and upon proof of the validity of the order of the | 3962 |
division, the delivery of the order to the person or persons | 3963 |
affected, and of the illegality and the continuation of the acts | 3964 |
or practices that are the subject of the order, the court may | 3965 |
grant an injunction implementing the order of the division. | 3966 |
| 3967 |
regarding subpoenas and subpoenas duces tecum at the request of | 3968 |
the securities administrator of another state, if it appears to | 3969 |
the division that the activities for which the information is | 3970 |
sought would violate this chapter if the activities had occurred | 3971 |
in this state. | 3972 |
| 3973 |
and concurrent with any other remedy provided in this chapter, and | 3974 |
the exercise of one remedy does not preclude or require the | 3975 |
exercise of any other remedy. | 3976 |
Sec. 1707.25. In case any person fails to file any statement | 3977 |
or report required by sections 1707.01 to 1707.45 of the Revised | 3978 |
Code, to obey any subpoena the issuance of which is provided for | 3979 |
in those sections, or to produce books, records, or papers, give | 3980 |
testimony, or answer questions, as required by those sections, the | 3981 |
director of commerce may apply to a court of common pleas of any | 3982 |
county for, and upon proof of such failure the court may grant, an | 3983 |
injunction
restraining the
acting as an investment adviser | 3984 |
investment adviser representative, or state retirement system | 3985 |
investment officer, or the issuance, sale, or offer for sale of | 3986 |
any securities by the person or by its agents, employees, | 3987 |
partners, officers, directors, or shareholders, until such failure | 3988 |
has been remedied and other relief as the facts may warrant has | 3989 |
been had. Such injunctive relief is available in addition to the | 3990 |
other remedies provided for in sections 1707.01 to 1707.45 of the | 3991 |
Revised Code. | 3992 |
Where the person refusing to comply with such order of court | 3993 |
is an issuer of securities, the court may enjoin the sale by any | 3994 |
dealer of any securities of the issuer, and the division of | 3995 |
securities may revoke the qualification of the securities of the | 3996 |
issuer, or suspend or revoke the sale of any securities of the | 3997 |
issuer which have been registered by description, and such | 3998 |
securities shall not thereafter be sold by any dealer until the | 3999 |
order of the court or of the division is withdrawn. | 4000 |
Sec. 1707.261. (A) If a court of common pleas grants an | 4001 |
injunction pursuant to section 1707.26 of the Revised Code, after | 4002 |
consultation with the attorney general the director of commerce | 4003 |
may request that court to order the defendant or defendants that | 4004 |
are subject to the injunction to make restitution or rescission to | 4005 |
any purchaser or holder of securities damaged by the defendant's | 4006 |
or defendants' violation of any provision of sections 1707.01 to | 4007 |
1707.45 of the Revised Code. | 4008 |
(B) If the court of common pleas is satisfied with the | 4009 |
sufficiency of the director's request for restitution or | 4010 |
rescission under division (A) of this section and with the | 4011 |
sufficiency of the proof of a substantial violation of any | 4012 |
provision of sections 1707.01 to 1707.45 of the Revised Code, or | 4013 |
of the use of any act, practice, or transaction declared to be | 4014 |
illegal or prohibited or defined as fraudulent by those sections | 4015 |
or rules adopted under those sections by the division of | 4016 |
securities, to the material prejudice of a purchaser or holder of | 4017 |
securities, the court may order the defendant or defendants | 4018 |
subject to the injunction to make restitution or rescission to any | 4019 |
purchaser or holder of securities damaged by the defendant's or | 4020 |
defendants' violation of sections 1707.01 to 1707.45 of the | 4021 |
Revised Code. | 4022 |
(C) A court order granting restitution or rescission based | 4023 |
upon a request made pursuant to division (A) of this section shall | 4024 |
meet the requirements of division (B) of this section and may not | 4025 |
be based solely upon a final order issued by the division of | 4026 |
securities pursuant to Chapter 119. of the Revised Code or upon an | 4027 |
action to enforce a final order issued by the division pursuant to | 4028 |
that chapter. Notwithstanding the foregoing provision, a request | 4029 |
for restitution or rescission pursuant to division (A) of this | 4030 |
section may concern the same acts, practices, or transactions that | 4031 |
were, or may later be, the subject of a division of securities | 4032 |
action for a violation of any provision of sections 1707.01 to | 4033 |
1707.45 of the Revised Code. If a request for restitution or | 4034 |
rescission pursuant to division (A) of this section concerns the | 4035 |
same acts, practices, or transactions that were the subject of a | 4036 |
final order issued by the division of securities pursuant to | 4037 |
Chapter 119. of the Revised Code, the court shall review the | 4038 |
request in accordance with division (B) of this section, and the | 4039 |
standard of review in section 119.12 of the Revised Code shall not | 4040 |
apply to the request. | 4041 |
(D) No purchaser or holder of securities who is entitled to | 4042 |
restitution or rescission under this section shall recover, | 4043 |
pursuant to this section or any other proceeding, a total amount | 4044 |
in excess of the person's purchase price for the securities sold | 4045 |
in violation of sections 1707.01 to 1707.45 of the Revised Code. | 4046 |
(E)(1) If a court of common pleas grants an injunction | 4047 |
pursuant to section 1707.26 of the Revised Code against any state | 4048 |
retirement system investment officer, after consultation with the | 4049 |
attorney general, the director of commerce may request that court | 4050 |
to order the state retirement system investment officer or | 4051 |
officers that are subject to the injunction to make restitution to | 4052 |
the state retirement system damaged by the state retirement system | 4053 |
investment officer's or officers' violation of any provision of | 4054 |
sections 1707.01 to 1707.45 of the Revised Code. | 4055 |
(2) If the court of common pleas is satisfied with the | 4056 |
sufficiency of the director's request for restitution under | 4057 |
division (E)(1) of this section and with the sufficiency of the | 4058 |
proof of a substantial violation of any provision of sections | 4059 |
1707.01 to 1707.45 of the Revised Code, or of the use of any act, | 4060 |
practice, or transaction declared to be illegal or prohibited or | 4061 |
defined as fraudulent by those sections or rules adopted under | 4062 |
those sections by the division of securities, to the material | 4063 |
prejudice of a state retirement system, the court may order the | 4064 |
state retirement system investment officer or officers subject to | 4065 |
the injunction to make restitution to the state retirement system | 4066 |
damaged by the state retirement system investment officer's or | 4067 |
officers' violation of sections 1707.01 to 1707.45 of the Revised | 4068 |
Code. A request for restitution pursuant to division (E)(1) of | 4069 |
this section may concern the same acts, practices, or transactions | 4070 |
that were, or may later be, the subject of a division of | 4071 |
securities action for a violation of any provision of section | 4072 |
1707.01 to 1707.45 of the Revised Code. | 4073 |
Sec. 1707.39. When any securities have been sold without | 4074 |
compliance with sections 1707.01 to 1707.45 of the Revised Code, | 4075 |
or any former law in force at the time of such sale, any | 4076 |
interested person may apply in writing to the division of | 4077 |
securities for the qualification of such securities under such | 4078 |
sections. If it appears to the division that no person has been | 4079 |
defrauded, prejudiced, or damaged by such noncompliance or sale | 4080 |
and that no person will be defrauded, prejudiced, or damaged by | 4081 |
such qualification, the division may permit such securities to be | 4082 |
so qualified upon the payment of a fee of one hundred dollars plus | 4083 |
a fee of one-fifth of one per cent of the aggregate price at which | 4084 |
the securities have been sold in this state, which fee shall in no | 4085 |
case be less than one hundred dollars nor more than two thousand | 4086 |
dollars. In addition, the division may require the applicant to | 4087 |
advance sufficient funds to pay the actual expenses of an | 4088 |
examination or investigation by the division, whether to be | 4089 |
conducted in this state or outside this state. An itemized | 4090 |
statement of such expenses shall be furnished to the applicant. | 4091 |
Such qualification shall estop the division from proceeding | 4092 |
under division | 4093 |
against anyone who has violated division (C)(1) of section 1707.44 | 4094 |
of the Revised Code for acts within the scope of the application, | 4095 |
or from proceeding with administrative action pursuant to section | 4096 |
1707.13 of the Revised Code. | 4097 |
Sec. 1707.431. For purposes of this section, the following | 4098 |
persons shall not be deemed to have effected, participated in, or | 4099 |
aided the seller in any way in making, a sale or contract of sale | 4100 |
in violation of sections 1707.01 to 1707.45 of the Revised Code: | 4101 |
(A) Any attorney, accountant, or engineer whose performance | 4102 |
is incidental to the practice of the person's profession; | 4103 |
(B) Any person, other than an investment adviser | 4104 |
investment adviser representative, or state retirement system | 4105 |
investment officer, who brings any issuer together with any | 4106 |
potential investor, without receiving, directly or indirectly, a | 4107 |
commission, fee, or other remuneration based on the sale of any | 4108 |
securities by the issuer to the investor. Remuneration received by | 4109 |
the person solely for the purpose of offsetting the reasonable | 4110 |
out-of-pocket costs incurred by the person shall not be deemed a | 4111 |
commission, fee, or other remuneration. | 4112 |
Any person claiming exemption under this division for a | 4113 |
publicly advertised meeting shall file a notice with the division | 4114 |
of securities indicating an intent to cause or hold such a meeting | 4115 |
at least twenty-one days prior to the meeting. The division may, | 4116 |
upon receipt of such notice, issue an order denying the | 4117 |
availability of an exemption under this division not more than | 4118 |
fourteen days after receipt of the notice based on a finding that | 4119 |
the applicant is not entitled to the exemption. Notwithstanding | 4120 |
the notice described in this section, a failure to file the notice | 4121 |
does not create a presumption that a person was participating in | 4122 |
or aiding in the making of a sale or contract of sale in violation | 4123 |
of this chapter. | 4124 |
(C) Any person whom the division exempts from this provision | 4125 |
by rule. | 4126 |
Sec. 1707.44. (A)(1) No person shall engage in any act or | 4127 |
practice that violates division (A), (B), or (C) of section | 4128 |
1707.14 of the Revised Code, and no salesperson shall sell | 4129 |
securities in this state without being licensed pursuant to | 4130 |
section 1707.16 of the Revised Code. | 4131 |
(2) No person shall engage in any act or practice that | 4132 |
violates division (A) of section 1707.141 or section 1707.161 of | 4133 |
the Revised Code. | 4134 |
(3) No person shall engage in any act or practice that | 4135 |
violates section 1707.162 of the Revised Code. | 4136 |
(B) No person shall knowingly make or cause to be made any | 4137 |
false representation concerning a material and relevant fact, in | 4138 |
any oral statement or in any prospectus, circular, description, | 4139 |
application, or written statement, for any of the following | 4140 |
purposes: | 4141 |
(1) Registering securities or transactions, or exempting | 4142 |
securities or transactions from registration, under this chapter; | 4143 |
(2) Securing the qualification of any securities under this | 4144 |
chapter; | 4145 |
(3) Procuring the licensing of any dealer, salesperson, | 4146 |
investment adviser, | 4147 |
retirement system investment officer under this chapter; | 4148 |
(4) Selling any securities in this state; | 4149 |
(5) Advising for compensation, as to the value of securities | 4150 |
or as to the advisability of investing in, purchasing, or selling | 4151 |
securities; | 4152 |
(6) Submitting a notice filing to the division under division | 4153 |
(X) of section 1707.03 or section 1707.092 or 1707.141 of the | 4154 |
Revised Code. | 4155 |
(C) No person shall knowingly sell, cause to be sold, offer | 4156 |
for sale, or cause to be offered for sale, any security which | 4157 |
comes under any of the following descriptions: | 4158 |
(1) Is not exempt under section 1707.02 of the Revised Code, | 4159 |
nor the subject matter of one of the transactions exempted in | 4160 |
section 1707.03, 1707.04, or 1707.34 of the Revised Code, has not | 4161 |
been registered by coordination or qualification, and is not the | 4162 |
subject matter of a transaction that has been registered by | 4163 |
description; | 4164 |
(2) The prescribed fees for registering by description, by | 4165 |
coordination, or by qualification have not been paid in respect to | 4166 |
such security; | 4167 |
(3) The person has been notified by the division, or has | 4168 |
knowledge of the notice, that the right to buy, sell, or deal in | 4169 |
such security has been suspended or revoked, or that the | 4170 |
registration by description, by coordination, or by qualification | 4171 |
under which it may be sold has been suspended or revoked; | 4172 |
(4) The offer or sale is accompanied by a statement that the | 4173 |
security offered or sold has been or is to be in any manner | 4174 |
indorsed by the division. | 4175 |
(D) No person who is an officer, director, or trustee of, or | 4176 |
a dealer for, any issuer, and who knows such issuer to be | 4177 |
insolvent in that the liabilities of the issuer exceed its assets, | 4178 |
shall sell any securities of or for any such issuer, without | 4179 |
disclosing the fact of the insolvency to the purchaser. | 4180 |
(E) No person with intent to aid in the sale of any | 4181 |
securities on behalf of the issuer, shall knowingly make any | 4182 |
representation not authorized by such issuer or at material | 4183 |
variance with statements and documents filed with the division by | 4184 |
such issuer. | 4185 |
(F) No person, with intent to deceive, shall sell, cause to | 4186 |
be sold, offer for sale, or cause to be offered for sale, any | 4187 |
securities of an insolvent issuer, with knowledge that such issuer | 4188 |
is insolvent in that the liabilities of the issuer exceed its | 4189 |
assets, taken at their fair market value. | 4190 |
(G) No person in purchasing or selling securities shall | 4191 |
knowingly engage in any act or practice that is, in this chapter, | 4192 |
declared illegal, defined as fraudulent, or prohibited. | 4193 |
(H) No licensed dealer shall refuse to buy from, sell to, or | 4194 |
trade with any person because the person appears on a blacklist | 4195 |
issued by, or is being boycotted by, any foreign corporate or | 4196 |
governmental entity, nor sell any securities of or for any issuer | 4197 |
who is known in relation to the issuance or sale of the securities | 4198 |
to have engaged in such practices. | 4199 |
(I) No dealer in securities, knowing that the dealer's | 4200 |
liabilities exceed the reasonable value of the dealer's assets, | 4201 |
shall accept money or securities, except in payment of or as | 4202 |
security for an existing debt, from a customer who is ignorant of | 4203 |
the dealer's insolvency, and thereby cause the customer to lose | 4204 |
any part of the customer's securities or the value of those | 4205 |
securities, by doing either of the following without the | 4206 |
customer's consent: | 4207 |
(1) Pledging, selling, or otherwise disposing of such | 4208 |
securities, when the dealer has no lien on or any special property | 4209 |
in such securities; | 4210 |
(2) Pledging such securities for more than the amount due, or | 4211 |
otherwise disposing of such securities for the dealer's own | 4212 |
benefit, when the dealer has a lien or indebtedness on such | 4213 |
securities. | 4214 |
It is an affirmative defense to a charge under this division | 4215 |
that, at the time the securities involved were pledged, sold, or | 4216 |
disposed of, the dealer had in the dealer's possession or control, | 4217 |
and available for delivery, securities of the same kinds and in | 4218 |
amounts sufficient to satisfy all customers entitled to the | 4219 |
securities, upon demand and tender of any amount due on the | 4220 |
securities. | 4221 |
(J) No person, with purpose to deceive, shall make, issue, | 4222 |
publish, or cause to be made, issued, or published any statement | 4223 |
or advertisement as to the value of securities, or as to alleged | 4224 |
facts affecting the value of securities, or as to the financial | 4225 |
condition of any issuer of securities, when the person knows that | 4226 |
such statement or advertisement is false in any material respect. | 4227 |
(K) No person, with purpose to deceive, shall make, record, | 4228 |
or publish or cause to be made, recorded, or published, a report | 4229 |
of any transaction in securities which is false in any material | 4230 |
respect. | 4231 |
(L) No dealer shall engage in any act that violates the | 4232 |
provisions of section 15(c) or 15(g) of the "Securities Exchange | 4233 |
Act of 1934," 48 Stat. 881, 15 U.S.C.A. 78o(c) or (g), or any rule | 4234 |
or regulation promulgated by the securities and exchange | 4235 |
commission thereunder. If, subsequent to October 11, 1994, | 4236 |
additional amendments to section 15(c) or 15(g) are adopted, or | 4237 |
additional rules or regulations are promulgated pursuant to such | 4238 |
sections, the division of securities shall, by rule, adopt the | 4239 |
amendments, rules, or regulations, unless the division finds that | 4240 |
the amendments, rules, or regulations are not necessary for the | 4241 |
protection of investors or in the public interest. | 4242 |
(M)(1) No investment adviser or investment adviser | 4243 |
representative shall do any of the following: | 4244 |
(a) Employ any device, scheme, or artifice to defraud any | 4245 |
person; | 4246 |
(b) Engage in any act, practice, or course of business that | 4247 |
operates or would operate as a fraud or deceit upon any person; | 4248 |
(c) In acting as principal for the investment adviser's or | 4249 |
investment adviser representative's own account, knowingly sell | 4250 |
any security to or purchase any security from a client, or in | 4251 |
acting as salesperson for a person other than such client, | 4252 |
knowingly effect any sale or purchase of any security for the | 4253 |
account of such client, without disclosing to the client in | 4254 |
writing before the completion of the transaction the capacity in | 4255 |
which the investment adviser or investment adviser representative | 4256 |
is acting and obtaining the consent of the client to the | 4257 |
transaction. Division (M)(1)(c) of this section does not apply to | 4258 |
any investment adviser registered with the securities and exchange | 4259 |
commission under section 203 of the "Investment Advisers Act of | 4260 |
1940," 15 U.S.C. 80b-3, or to any transaction with a customer of a | 4261 |
licensed dealer or salesperson if the licensed dealer or | 4262 |
salesperson is not acting as an investment adviser or investment | 4263 |
adviser representative in relation to the transaction. | 4264 |
(d) Engage in any act, practice, or course of business that | 4265 |
is fraudulent, deceptive, or manipulative. The division of | 4266 |
securities may adopt rules reasonably designed to prevent such | 4267 |
acts, practices, or courses of business that are fraudulent, | 4268 |
deceptive, or manipulative. | 4269 |
(2) No investment adviser or investment adviser | 4270 |
representative licensed or required to be licensed under this | 4271 |
chapter shall take or have custody of any securities or funds of | 4272 |
any person, except as provided in rules adopted by the division. | 4273 |
(3) In the solicitation of clients or prospective clients, no | 4274 |
person shall make any untrue statement of a material fact or omit | 4275 |
to state a material fact necessary in order to make the statements | 4276 |
made not misleading in light of the circumstances under which the | 4277 |
statements were made. | 4278 |
(N) No person knowingly shall influence, coerce, manipulate, | 4279 |
or mislead any person engaged in the preparation, compilation, | 4280 |
review, or audit of financial statements to be used in the | 4281 |
purchase or sale of securities for the purpose of rendering the | 4282 |
financial statements materially misleading. | 4283 |
(O) No state retirement system investment officer shall do | 4284 |
any of the following: | 4285 |
(1) Employ any device, scheme, or artifice to defraud any | 4286 |
state retirement system; | 4287 |
(2) Engage in any act, practice, or course of business that | 4288 |
operates or would operate as a fraud or deceit on any state | 4289 |
retirement system; | 4290 |
(3) Engage in any act, practice, or course of business that | 4291 |
is fraudulent, deceptive, or manipulative. The division of | 4292 |
securities may adopt rules reasonably designed to prevent such | 4293 |
acts, practices, or courses of business as are fraudulent, | 4294 |
deceptive, or manipulative. | 4295 |
Sec. 1707.46. The principal executive officer of the | 4296 |
division of securities shall be the commissioner of securities, | 4297 |
who shall be appointed by the director of commerce. The | 4298 |
commissioner of securities shall enforce all the laws and | 4299 |
administrative rules enacted or adopted to regulate the sale of | 4300 |
bonds, stocks, and other securities and to prevent fraud in such | 4301 |
sales. The commissioner also shall enforce all the laws and | 4302 |
administrative rules enacted or adopted to regulate investment | 4303 |
advisers | 4304 |
retirement system investment officers and to prevent fraud in | 4305 |
their acts, practices, and transactions. | 4306 |
The commissioner shall be paid at a rate not less than pay | 4307 |
range 47 set out in schedule E-2 of section 124.152 of the Revised | 4308 |
Code, to be paid as other operating expenses of the division. | 4309 |
Sec. 3307.03. A state teachers retirement system is hereby | 4310 |
established for the teachers of the public schools of the state | 4311 |
which includes the several funds created and placed under the | 4312 |
management of a state teachers retirement board for the payment of | 4313 |
retirement allowances and other benefits under Chapter 3307. of | 4314 |
the Revised Code. The board may sue and be sued, plead and be | 4315 |
impleaded, contract and be contracted with, and do all things | 4316 |
necessary to carry out such sections. All of its business shall be | 4317 |
transacted, and all of its funds invested, all warrants for money | 4318 |
drawn and payments made, and all of its cash, securities, and | 4319 |
other property shall be held in the name of the board or in the | 4320 |
name of its nominee, provided that nominees are authorized by | 4321 |
retirement board resolution for the purpose of facilitating the | 4322 |
ownership and transfer of investments and are restricted to | 4323 |
members of the board, the executive director, and designated | 4324 |
members of the staff, or a partnership or corporation composed of | 4325 |
any of the foregoing persons. | 4326 |
If the Ohio retirement study council establishes a uniform | 4327 |
format for any report the board is required to submit to the | 4328 |
council, the board shall submit the report in that format. | 4329 |
Sec. 3307.041. The state teachers retirement board shall do | 4330 |
all of the following: | 4331 |
(A) In consultation with the Ohio ethics commission, review | 4332 |
any existing policy regarding the travel and payment of travel | 4333 |
expenses of members and employees of the state teachers retirement | 4334 |
board and adopt rules in accordance with section 3307.04 of the | 4335 |
Revised Code establishing a new or revised policy regarding travel | 4336 |
and payment of travel expenses; | 4337 |
(B) If the board intends to award a bonus to any employee of | 4338 |
the board, adopt rules in accordance with section 3307.04 of the | 4339 |
Revised Code establishing a policy regarding employee bonuses; | 4340 |
(C) Provide copies of the rules adopted under divisions (A) | 4341 |
and (B) of this section to each member of the Ohio retirement | 4342 |
study council; | 4343 |
(D) Submit to the Ohio retirement study council a proposed | 4344 |
operating budget, including a travel budget, for the next | 4345 |
immediate fiscal year and adopt that budget not earlier than sixty | 4346 |
days after it is submitted to the council. | 4347 |
Sec. 3307.042. The state teachers retirement board shall, in | 4348 |
consultation with the Ohio ethics commission, develop an ethics | 4349 |
policy. The board shall submit this policy to the Ohio retirement | 4350 |
study council for approval. | 4351 |
The council shall review the policy in consultation with the | 4352 |
Ohio ethics commission and, if the council determines that the | 4353 |
policy is adequate, approve the policy. If the council determines | 4354 |
that the policy is inadequate, it shall specify the revisions to | 4355 |
be made and the board shall submit a revised policy. If the | 4356 |
council approves the revised policy, the board shall adopt it. If | 4357 |
not, the board shall make any further revisions required by the | 4358 |
council and adopt the policy. | 4359 |
The board periodically shall provide ethics training to | 4360 |
members and employees of the board. The training shall include | 4361 |
training regarding the requirements and prohibitions of Chapter | 4362 |
102. of the Revised Code and sections 2921.42 and 2921.43 of the | 4363 |
Revised Code and any other training the board considers | 4364 |
appropriate. | 4365 |
The board shall establish a procedure to ensure that each | 4366 |
employee of the board is informed of the procedure for filing a | 4367 |
complaint alleging violation of Chapter 102. of the Revised Code | 4368 |
or section 2921.42 or 2921.43 of the Revised Code with the Ohio | 4369 |
ethics commission or the appropriate prosecuting attorney. | 4370 |
Sec. 3307.043. (A) The state teachers retirement board shall | 4371 |
designate a person who is a licensed state retirement system | 4372 |
investment officer to be the chief investment officer for the | 4373 |
state teachers retirement system. The board shall notify the | 4374 |
division of securities of the department of commerce in writing of | 4375 |
its designation and of any change in its designation within ten | 4376 |
calendar days of the designation or change. | 4377 |
(B) The chief investment officer shall reasonably supervise | 4378 |
the licensed state retirement system investment officers and other | 4379 |
persons employed by the state teachers retirement system with a | 4380 |
view toward preventing violations of Chapter 1707. of the Revised | 4381 |
Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and | 4382 |
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. | 4383 |
and following, and the "Securities Exchange Act of 1934," 48 Stat. | 4384 |
881, 15 U.S.C. 78a, and following, and the rules and regulations | 4385 |
promulgated under those statutes. This duty of reasonable | 4386 |
supervision shall include the adoption, implementation, and | 4387 |
enforcement of written policies and procedures reasonably designed | 4388 |
to prevent persons employed by the state teachers retirement | 4389 |
system from misusing material, nonpublic information in violation | 4390 |
of those laws, rules, and regulations. | 4391 |
For purposes of this division, no chief investment officer | 4392 |
shall be considered to have failed to satisfy the officer's duty | 4393 |
of reasonable supervision if the officer has done all of the | 4394 |
following: | 4395 |
(1) Adopted and implemented written procedures, and a system | 4396 |
for applying the procedures, that would reasonably be expected to | 4397 |
prevent and detect, insofar as practicable, any violation by its | 4398 |
licensed investment officers and other persons employed by the | 4399 |
state teachers retirement system; | 4400 |
(2) Reasonably discharged the duties and obligations | 4401 |
incumbent on the chief investment officer by reason of the | 4402 |
established procedures and the system for applying the procedures | 4403 |
when the officer had no reasonable cause to believe that there was | 4404 |
a failure to comply with the procedures and systems; | 4405 |
(3) Reviewed, at least annually, the adequacy of the policies | 4406 |
and procedures established pursuant to this section and the | 4407 |
effectiveness of their implementation. | 4408 |
(C) The chief investment officer shall ensure that securities | 4409 |
transactions are executed in such a manner that the state teachers | 4410 |
retirement system's total costs or proceeds in each transaction | 4411 |
are the most favorable under the circumstances. | 4412 |
For purposes of this division, no chief investment officer | 4413 |
shall be considered to have failed to satisfy the officer's duty | 4414 |
of best execution if the officer has done both of the following: | 4415 |
(1) Adopted and implemented a written policy that outlines | 4416 |
the criteria used to select broker-dealers that execute securities | 4417 |
transactions on behalf of the state teachers retirement system, | 4418 |
which criteria shall include all of the following: | 4419 |
(a) Commissions charged by the broker-dealer, both in the | 4420 |
aggregate and on a per share basis; | 4421 |
(b) The execution speed and trade settlement capabilities of | 4422 |
the broker-dealer; | 4423 |
(c) The responsiveness, reliability, and integrity of the | 4424 |
broker-dealer; | 4425 |
(d) The nature and value of research provided by the | 4426 |
broker-dealer; | 4427 |
(e) Any special capabilities of the broker-dealer. | 4428 |
(2) Reviewed, at least annually, the performance of | 4429 |
broker-dealers that execute securities transactions on behalf of | 4430 |
the state teachers retirement system. | 4431 |
Sec. 3307.05. The state teachers retirement board shall | 4432 |
consist of the
following | 4433 |
(A) The superintendent of public instruction; | 4434 |
(B) The auditor of state; | 4435 |
(C) The | 4436 |
(D) Five members, known as teacher members, who shall be | 4437 |
members of the state teachers retirement system; | 4438 |
(E) | 4439 |
retired
teacher | 4440 |
superannuates who | 4441 |
positions requiring | 4442 |
contributions to the system; | 4443 |
(F) One member, known as the school board member, who shall | 4444 |
be a member of a city, local, exempted village, or joint | 4445 |
vocational school board district board of education or a member of | 4446 |
an educational service center governing board, but need not be a | 4447 |
member of the retirement system. | 4448 |
Sec. 3307.051. Each newly elected member of the state | 4449 |
teachers retirement board and each individual appointed to fill a | 4450 |
vacancy on the board, shall, not later than ninety days after | 4451 |
commencing service as a board member, complete the orientation | 4452 |
program component of the retirement board member education program | 4453 |
established under section 171.50 of the Revised Code. | 4454 |
Each member of the board who has served a year or longer as a | 4455 |
board member shall, not less than twice each year, attend one or | 4456 |
more programs that are part of the continuing education component | 4457 |
of the retirement board member education program established under | 4458 |
section 171.50 of the Revised Code. | 4459 |
Sec. 3307.06. (A) Annually on the first Monday of May, one | 4460 |
teacher member, as defined in division (D) of section 3307.05 of | 4461 |
the Revised Code, shall be elected by ballot to the state teachers | 4462 |
retirement board, except that, beginning with the annual election | 4463 |
for teacher members in May, 1978, and in the annual election of | 4464 |
each fourth year thereafter, two teacher members shall be elected | 4465 |
to the board. Elected teacher members shall begin their respective | 4466 |
terms of office on the first day of September following their | 4467 |
election and shall serve for a term of four years. | 4468 |
(B) The retired teacher | 4469 |
defined in division (E) of section 3307.05 of the Revised Code, | 4470 |
shall be
elected for a term of four years | 4471 |
4472 | |
The
retired teacher | 4473 |
at the annual election for teacher members of the board, as | 4474 |
provided in division (A) of this section, in the year in which the | 4475 |
term of
the current retired teacher | 4476 |
The retired
teacher | 4477 |
respective terms of office on the first day of September following | 4478 |
4479 |
No teacher member of the board who retires while a member of | 4480 |
the board shall be eligible to become a retired teacher member of | 4481 |
the board for three years after the date of the member's | 4482 |
retirement. | 4483 |
(C) The school board member of the board, as defined in | 4484 |
division (F) of section 3307.05 of the Revised Code, shall be | 4485 |
elected by ballot for a term of four years at the annual election | 4486 |
for teacher members of the board, as provided in division (A) of | 4487 |
this section. The school board member of the board shall be | 4488 |
elected by school board members regardless of whether they are | 4489 |
members of the retirement system. | 4490 |
The initial school board member shall be elected to the board | 4491 |
at the first annual election for teacher members of the board that | 4492 |
occurs not less than ninety days after the effective date of this | 4493 |
amendment. Thereafter, the school board member shall be elected to | 4494 |
the board at the annual election in the year in which the term of | 4495 |
the current school board member would expire. The school board | 4496 |
member's term of office shall begin on the first day of September | 4497 |
following the member's election. | 4498 |
(D) If a vacancy occurs during the term of office of any | 4499 |
elected member of the board, the remaining members of the board | 4500 |
shall elect a successor member | 4501 |
election results under section 111.30 of the Revised Code the | 4502 |
successor member shall hold office | 4503 |
4504 | |
less than ninety days after the successor member's election. The | 4505 |
successor member shall qualify for board membership under the same | 4506 |
division of section
3307.05 of the Revised Code as | 4507 |
member's predecessor in office. Elections under this division | 4508 |
shall be conducted under the supervision of the secretary of state | 4509 |
pursuant to section 111.30 of the Revised Code. | 4510 |
| 4511 |
member of the board would no longer qualify for board membership | 4512 |
under that division of section 3307.05 of the Revised Code on the | 4513 |
basis of which | 4514 |
fails to attend the meetings of the board for four months or | 4515 |
longer,
without being excused, | 4516 |
board shall be considered vacant, and a successor member shall be | 4517 |
4518 | |
remainder of | 4519 |
Sec. 3307.061. A teacher member or retired teacher member of | 4520 |
the state teachers retirement board who is charged with committing | 4521 |
a felony, a theft offense as defined in section 2913.01 of the | 4522 |
Revised Code, or a violation of section 102.02, 102.03, 102.04, | 4523 |
2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or | 4524 |
2921.44 of the Revised Code shall be suspended from participation | 4525 |
on the board for the period during which the charges are pending. | 4526 |
If the charges are dismissed, the member is found not guilty, or | 4527 |
the charges are otherwise resolved in a manner not resulting in | 4528 |
the member being convicted of or pleading guilty to an offense of | 4529 |
that nature, the suspension shall end, and the member may | 4530 |
participate on the board. If the member pleads guilty to or is | 4531 |
convicted of the offense, the position of the member on the board | 4532 |
shall be deemed vacant. A person who has pleaded guilty to or been | 4533 |
convicted of an offense of that nature is ineligible for election | 4534 |
to the office of teacher or retired teacher member of the state | 4535 |
teachers retirement board. | 4536 |
The Ohio retirement study council may hold a hearing to | 4537 |
determine whether to remove a teacher member or retired teacher | 4538 |
member of the state teachers retirement board who has been | 4539 |
suspended pursuant to this section. If it decides to hold a | 4540 |
hearing, the council shall provide the suspended board member at | 4541 |
least seven days prior notice of the time, date, and place of the | 4542 |
hearing. The suspended board member may be represented by an | 4543 |
attorney. At the hearing the suspended board member, or the | 4544 |
suspended board member's attorney, shall have an opportunity to | 4545 |
present evidence, call witnesses, and cross-examine witnesses. The | 4546 |
hearing shall be open to the public. At the conclusion of the | 4547 |
hearing, if the voting members of the council unanimously vote to | 4548 |
remove the suspended board member, the suspended board member | 4549 |
shall be removed from the board, and the position of the member | 4550 |
shall be deemed vacant. | 4551 |
Sec. 3307.07. All elections of members of the state teachers | 4552 |
retirement board shall be held under the direction of the board in | 4553 |
accordance with rules adopted under section 111.30 of the Revised | 4554 |
Code. Any member of the state teachers retirement system, who has | 4555 |
been nominated by a petition that is signed by five hundred or | 4556 |
more members of the system and certified under section 111.30 of | 4557 |
the Revised Code, shall be eligible for election as a teacher | 4558 |
member of the board. The petition shall contain the signatures of | 4559 |
twenty or more members of the system from each of at least ten | 4560 |
counties wherein members of the system are employed. | 4561 |
Any retired teacher who is a superannuate and a resident of | 4562 |
Ohio is
eligible for election
as | 4563 |
the board, if such retired teacher has been nominated by a | 4564 |
petition that is signed by five hundred or more retired teachers, | 4565 |
who are also superannuates, and certified under section 111.30 of | 4566 |
the Revised Code. The petition shall contain the signatures of | 4567 |
twenty or more retired teachers from each of at least ten counties | 4568 |
wherein superannuates under the system reside. | 4569 |
The board shall place the name of any eligible candidate upon | 4570 |
the appropriate ballot as a regular candidate. At any election, | 4571 |
qualified voters, as defined in this section, may vote for the | 4572 |
regular candidates or for other eligible candidates, in which case | 4573 |
the names of such persons shall be written upon the appropriate | 4574 |
ballots, except that members of the system and former members of | 4575 |
the system who are superannuates shall vote respectively for | 4576 |
teacher members and | 4577 |
board. The candidate who receives the highest number of votes for | 4578 |
any term of office shall be elected to the board on certification | 4579 |
of the election results under section 111.30 of the Revised Code. | 4580 |
If, at any election, teacher members or retired teacher members | 4581 |
are to be elected for concurrent terms, eligible candidates shall | 4582 |
be placed on the ballot, and the candidates who receive the | 4583 |
highest numbers of votes shall be elected to the board on | 4584 |
certification of the election results under section 111.30 of the | 4585 |
Revised Code. | 4586 |
Elected members of the board shall be elected on the basis of | 4587 |
the total number of ballots cast by qualified voters, who shall | 4588 |
consist of members of the system and former members of the system | 4589 |
who are superannuates. | 4590 |
Sec. 3307.072. (A) As used in this section: | 4591 |
(1) "Campaign committee" means a candidate or a combination | 4592 |
of two or more persons authorized by a candidate to receive | 4593 |
contributions and in-kind contributions and make expenditures on | 4594 |
behalf of the candidate. | 4595 |
(2) "Candidate" means an individual who has been nominated | 4596 |
pursuant to section 3307.07 of the Revised Code for election to | 4597 |
the state teachers retirement board. | 4598 |
(3) "Contribution" means a loan, gift, deposit, forgiveness | 4599 |
of indebtedness, donation, advance, payment, transfer of funds or | 4600 |
transfer of anything of value including a transfer of funds from | 4601 |
an inter vivos or testamentary trust or decedent's estate, and the | 4602 |
payment by any person other than the person to whom the services | 4603 |
are rendered for the personal services of another person, which | 4604 |
contribution is made, received, or used for the purpose of | 4605 |
influencing the results of an election to the state teachers | 4606 |
retirement board under section 3307.07 of the Revised Code. | 4607 |
"Contribution" does not include: | 4608 |
(a) Services provided without compensation by individuals | 4609 |
volunteering a portion or all of their time on behalf of a person; | 4610 |
(b) Ordinary home hospitality; | 4611 |
(c) The personal expenses of a volunteer paid for by that | 4612 |
volunteer campaign worker. | 4613 |
(4) "Election day" means the following, as appropriate to the | 4614 |
situation: | 4615 |
(a) The first Monday in May of a year for which section | 4616 |
3307.06 of the Revised Code specifies that an election for a | 4617 |
member of the state teachers retirement board be held; | 4618 |
(b) If, pursuant to section 3307.071 of the Revised Code, no | 4619 |
election is held, the first Monday in May of a year that the | 4620 |
election would have been held if not for section 3307.071 of the | 4621 |
Revised Code. | 4622 |
(5) "Expenditure" means the disbursement or use of a | 4623 |
contribution for the purpose of influencing the results of an | 4624 |
election to the state teachers retirement board under section | 4625 |
3307.07 of the Revised Code. | 4626 |
(6) "In-kind contribution" means anything of value other than | 4627 |
money that is used to influence the results of an election to the | 4628 |
state teachers retirement board under section 3307.07 of the | 4629 |
Revised Code or is transferred to or used in support of or in | 4630 |
opposition to a candidate and that is made with the consent of, in | 4631 |
coordination, cooperation, or consultation with, or at the request | 4632 |
or suggestion of the benefited candidate. The financing of the | 4633 |
dissemination, distribution, or republication, in whole or part, | 4634 |
of any broadcast or of any written, graphic, or other form of | 4635 |
campaign materials prepared by the candidate, the candidate's | 4636 |
campaign committee, or their authorized agents is an in-kind | 4637 |
contribution to the candidate and an expenditure by the candidate. | 4638 |
(7) "Personal expenses" includes ordinary expenses for | 4639 |
accommodations, clothing, food, personal motor vehicle or | 4640 |
airplane, and home telephone. | 4641 |
(B) Each candidate who, or whose campaign committee, receives | 4642 |
a contribution or in-kind contribution or makes an expenditure in | 4643 |
connection with the candidate's efforts to be elected to the state | 4644 |
teachers retirement board shall file with the secretary of state | 4645 |
two complete, accurate, and itemized statements setting forth in | 4646 |
detail the contributions, in-kind contributions, and expenditures. | 4647 |
The statements shall be filed regardless of whether, pursuant to | 4648 |
section 3307.071 of the Revised Code, no election is held. The | 4649 |
statements shall be made on a form prescribed under section 111.30 | 4650 |
of the Revised Code. | 4651 |
The first statement shall be filed not later than four p.m. | 4652 |
on the day that is twelve days before election day. The second | 4653 |
statement shall be filed not sooner than the day that is eight | 4654 |
days after election day and not later than thirty-eight days after | 4655 |
election day. The first statement shall reflect contributions and | 4656 |
in-kind contributions received and expenditures made to the close | 4657 |
of business on the twentieth day before election day. The second | 4658 |
statement shall reflect contributions and in-kind contributions | 4659 |
received and expenditures made during the period beginning on the | 4660 |
nineteenth day before election day and ending on the close of | 4661 |
business on the seventh day after election day. | 4662 |
(C) Each individual, partnership, or other entity who makes | 4663 |
an expenditure in connection with the candidate's efforts to be | 4664 |
elected to the state teachers retirement board shall file with the | 4665 |
secretary of state two complete, accurate, and itemized statements | 4666 |
setting forth in detail the expenditures. The statements shall be | 4667 |
filed regardless of whether, pursuant to section 3307.071 of the | 4668 |
Revised Code, no election is held. The statements shall be made on | 4669 |
a form prescribed under section 111.30 of the Revised Code. | 4670 |
The first statement shall be filed not later than four p.m. | 4671 |
on the day that is twelve days before election day. The second | 4672 |
statement shall be filed not sooner than the day that is eight | 4673 |
days after election day and not later than thirty-eight days after | 4674 |
election day. The first statement shall reflect expenditures made | 4675 |
to the close of business on the twentieth day before election day. | 4676 |
The second statement shall reflect expenditures made during the | 4677 |
period beginning on the nineteenth day before election day and | 4678 |
ending on the close of business on the seventh day after election | 4679 |
day. | 4680 |
Sec. 3307.073. (A) No person shall knowingly fail to file a | 4681 |
complete and accurate statement in accordance with section | 4682 |
3307.072 of the Revised Code. | 4683 |
(B) No person, during the course of a person seeking | 4684 |
nomination for, and during any campaign for, election to the state | 4685 |
teachers retirement board, shall knowingly and with intent to | 4686 |
affect the nomination or the outcome of the campaign do any of the | 4687 |
following by means of campaign materials, an advertisement on | 4688 |
radio or television or in a newspaper or periodical, a public | 4689 |
speech, press release, or otherwise: | 4690 |
(1) With regard to a candidate, identify the candidate in a | 4691 |
manner that implies that the candidate is a member of the board or | 4692 |
use the term "re-elect" when the candidate is not currently a | 4693 |
member of the board; | 4694 |
(2) Make a false statement concerning the formal schooling or | 4695 |
training completed or attempted by a candidate; a degree, diploma, | 4696 |
certificate, scholarship, grant, award, prize, or honor received, | 4697 |
earned, or held by a candidate; or the period of time during which | 4698 |
a candidate attended any school, college, community technical | 4699 |
school, or institution; | 4700 |
(3) Make a false statement concerning the professional, | 4701 |
occupational, or vocational licenses held by a candidate, or | 4702 |
concerning any position the candidate held for which the candidate | 4703 |
received a salary or wages; | 4704 |
(4) Make a false statement that a candidate or public | 4705 |
official has been indicted or convicted of a theft offense, | 4706 |
extortion, or other crime involving financial corruption or moral | 4707 |
turpitude; | 4708 |
(5) Make a statement that a candidate has been indicted for | 4709 |
any crime or has been the subject of a finding by the Ohio | 4710 |
elections commission without disclosing the outcome of any legal | 4711 |
proceedings resulting from the indictment or finding; | 4712 |
(6) Make a false statement that a candidate or official has a | 4713 |
record of treatment or confinement for mental disorder; | 4714 |
(7) Make a false statement that a candidate or official has | 4715 |
been subjected to military discipline for criminal misconduct or | 4716 |
dishonorably discharged from the armed services; | 4717 |
(8) Falsely identify the source of a statement, issue | 4718 |
statements under the name of another person without authorization, | 4719 |
or falsely state the endorsement of or opposition to a candidate | 4720 |
by a person or publication; | 4721 |
(9) Make a false statement concerning the voting record of a | 4722 |
candidate or public official; | 4723 |
(10) Post, publish, circulate, distribute, or otherwise | 4724 |
disseminate a false statement concerning a candidate, either | 4725 |
knowing the same to be false or with reckless disregard of whether | 4726 |
it was false or not, if the statement is designed to promote the | 4727 |
election, nomination, or defeat of the candidate. | 4728 |
Sec. 3307.074. The secretary of state, or any person acting | 4729 |
on personal knowledge and subject to the penalties of perjury, may | 4730 |
file a complaint with the Ohio elections commission alleging a | 4731 |
violation of section 3307.073 of the Revised Code. The complaint | 4732 |
shall be made on a form prescribed and provided by the commission. | 4733 |
On receipt of a complaint under this section, the commission | 4734 |
shall hold a hearing open to the public to determine whether the | 4735 |
violation alleged in the complaint has occurred. The commission | 4736 |
may administer oaths and issue subpoenas to any person in the | 4737 |
state compelling the attendance of witnesses and the production of | 4738 |
relevant papers, books, accounts, and reports. On the refusal of | 4739 |
any person to obey a subpoena or to be sworn or to answer as a | 4740 |
witness, the commission may apply to the court of common pleas of | 4741 |
Franklin county under section 2705.03 of the Revised Code. The | 4742 |
court shall hold contempt proceedings in accordance with Chapter | 4743 |
2705. of the Revised Code. | 4744 |
The commission shall provide the person accused of the | 4745 |
violation at least seven days prior notice of the time, date, and | 4746 |
place of the hearing. The accused may be represented by an | 4747 |
attorney and shall have an opportunity to present evidence, call | 4748 |
witnesses, and cross-examine witnesses. | 4749 |
At the hearing, the commission shall determine whether the | 4750 |
violation alleged in the complaint has occurred. If the commission | 4751 |
determines that a violation of division (A) of section 3307.073 of | 4752 |
the Revised Code has occurred, the commission shall either impose | 4753 |
a fine under section 3307.99 of the Revised Code or enter a | 4754 |
finding that good cause has been shown not to impose the fine. If | 4755 |
the commission determines that a violation of division (B) of | 4756 |
section 3307.073 of the Revised Code has occurred, the commission | 4757 |
shall impose the fine described in section 3307.99 of the Revised | 4758 |
Code, refer the matter to the appropriate prosecutor, or enter a | 4759 |
finding that good cause has been shown not to impose a fine or | 4760 |
refer the matter to a prosecutor. | 4761 |
Sec. 3307.11. The state teachers retirement board shall | 4763 |
elect from its membership, a chairperson and a vice-chairperson. | 4764 |
The board shall employ an executive director who shall serve as | 4765 |
secretary, and shall employ other persons necessary to operate the | 4766 |
system and to fulfill the board's duties and responsibilities | 4767 |
under Chapter 3307. of the Revised Code. | 4768 |
Effective ninety days after the effective date of this | 4769 |
amendment, the board may not employ a state retirement system | 4770 |
investment officer, as defined in section 1707.01 of the Revised | 4771 |
Code, who does not hold a valid state retirement system investment | 4772 |
officer license issued by the division of securities in the | 4773 |
department of commerce. | 4774 |
The compensation of all employees and all other expenses of | 4775 |
the board necessary for the proper operation of the system shall | 4776 |
be paid in such amounts as the board approves. | 4777 |
Every expense voucher of an employee, officer, or board | 4778 |
member of the state teachers retirement system shall itemize all | 4779 |
purchases and expenditures. | 4780 |
The board shall receive all applications for retirement under | 4781 |
the plans described in section 3307.031 of the Revised Code, shall | 4782 |
provide for the payment of all retirement allowances and other | 4783 |
benefits payable under this chapter, and shall make other | 4784 |
expenditures authorized by this chapter. | 4785 |
Sec. 3307.152. The attorney general may maintain a civil | 4786 |
action under section 109.98 of the Revised Code against a member | 4787 |
of the state teachers retirement board for harm resulting from a | 4788 |
breach of the member's fiduciary duty. | 4789 |
Sec. 3307.20. (A) As used in this section: | 4790 |
(1) "Personal history record" means information maintained by | 4791 |
the state teachers retirement board on an individual who is a | 4792 |
member, former member, contributor, former contributor, retirant, | 4793 |
or beneficiary that includes the address, telephone number, social | 4794 |
security number, record of contributions, correspondence with the | 4795 |
state teachers retirement system, or other information the board | 4796 |
determines to be confidential. | 4797 |
(2) "Retirant" has the same meaning as in section 3307.50 of | 4798 |
the Revised Code. | 4799 |
(B) The records of the board shall be open to public | 4800 |
inspection, except for the following, which shall be excluded, | 4801 |
except with the written authorization of the individual concerned: | 4802 |
(1) The individual's personal records provided for in section | 4803 |
3307.23 of the Revised Code; | 4804 |
(2) The individual's personal history record; | 4805 |
(3) Any information identifying, by name and address, the | 4806 |
amount of a monthly allowance or benefit paid to the individual. | 4807 |
(C) All medical reports and recommendations under sections | 4808 |
3307.62, 3307.64, and 3307.66 of the Revised Code are privileged, | 4809 |
except that copies of such medical reports or recommendations | 4810 |
shall be made available to the personal physician, attorney, or | 4811 |
authorized agent of the individual concerned upon written release | 4812 |
received from the individual or the individual's agent, or, when | 4813 |
necessary for the proper administration of the fund, to the board | 4814 |
assigned physician. | 4815 |
(D) Any person who is a member or contributor of the system | 4816 |
shall be furnished, on written request, with a statement of the | 4817 |
amount to the credit of the person's account. The board need not | 4818 |
answer more than one request of a person in any one year. | 4819 |
(E) Notwithstanding the exceptions to public inspection in | 4820 |
division (B) of this section, the board may furnish the following | 4821 |
information: | 4822 |
(1) If a member, former member, retirant, contributor, or | 4823 |
former contributor is subject to an order issued under section | 4824 |
2907.15 of the Revised Code or is convicted of or pleads guilty to | 4825 |
a violation of section 2921.41 of the Revised Code, on written | 4826 |
request of a prosecutor as defined in section 2935.01 of the | 4827 |
Revised Code, the board shall furnish to the prosecutor the | 4828 |
information requested from the individual's personal history | 4829 |
record. | 4830 |
(2) Pursuant to a court or administrative order issued under | 4831 |
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the | 4832 |
Revised Code, the board shall furnish to a court or child support | 4833 |
enforcement agency the information required under that section. | 4834 |
(3) At the written request of any person, the board shall | 4835 |
provide to the person a list of the names and addresses of | 4836 |
members, former members, retirants, contributors, former | 4837 |
contributors, or beneficiaries. The costs of compiling, copying, | 4838 |
and mailing the list shall be paid by such person. | 4839 |
(4) Within fourteen days after receiving from the director of | 4840 |
job and family services a list of the names and social security | 4841 |
numbers of recipients of public assistance pursuant to section | 4842 |
5101.181 of the Revised Code, the board shall inform the auditor | 4843 |
of state of the name, current or most recent employer address, and | 4844 |
social security number of each member whose name and social | 4845 |
security number are the same as that of a person whose name or | 4846 |
social security number was submitted by the director. The board | 4847 |
and its employees shall, except for purposes of furnishing the | 4848 |
auditor of state with information required by this section, | 4849 |
preserve the confidentiality of recipients of public assistance in | 4850 |
compliance with division (A) of section 5101.181 of the Revised | 4851 |
Code. | 4852 |
(5) The system shall comply with orders issued under section | 4853 |
3105.87 of the Revised Code. | 4854 |
On the written request of an alternate payee, as defined in | 4855 |
section 3105.80 of the Revised Code, the system shall furnish to | 4856 |
the alternate payee information on the amount and status of any | 4857 |
amounts payable to the alternate payee under an order issued under | 4858 |
section 3105.171 or 3105.65 of the Revised Code. | 4859 |
(6) At the request of any person, the board shall make | 4860 |
available to the person copies of all documents, including | 4861 |
resumes, in the board's possession regarding filling a vacancy of | 4862 |
a teacher member or retired teacher member of the board. The | 4863 |
person who made the request shall pay the cost of compiling, | 4864 |
copying, and mailing the documents. The information described in | 4865 |
this division is a public record. | 4866 |
(7) The board shall furnish the personal history records kept | 4867 |
by the board to the secretary of state for the purposes of | 4868 |
certifying an election pursuant to section 111.30 of the Revised | 4869 |
Code. | 4870 |
(F) A statement that contains information obtained from the | 4871 |
system's records that is signed by an officer of the retirement | 4872 |
system and to which the system's official seal is affixed, or | 4873 |
copies of the system's records to which the signature and seal are | 4874 |
attached, shall be received as true copies of the system's records | 4875 |
in any court or before any officer of this state. | 4876 |
Sec. 3307.99. (A) Whoever violates division (A) of section | 4877 |
3307.073 of the Revised Code shall be fined not more than one | 4878 |
hundred dollars for each day of the violation. | 4879 |
(B) Whoever violates division (B) of section 3307.073 of the | 4880 |
Revised Code shall be imprisoned for not more than six months or | 4881 |
fined not more than five thousand dollars, or both. | 4882 |
(C) Fines imposed by the Ohio elections commission under this | 4883 |
section shall be paid into the Ohio elections commission fund | 4884 |
created under section 3513.10 of the Revised Code. | 4885 |
Sec. 3309.03. A school employees retirement system is hereby | 4886 |
established for the employees as defined in section 3309.01 of the | 4887 |
Revised Code, which shall include the several funds created and | 4888 |
placed under the management of the school employees retirement | 4889 |
board for the payment of retirement allowances and other benefits | 4890 |
provided in Chapter 3309. of the Revised Code. The board may sue | 4891 |
and be sued, plead and be impleaded, contract and be contracted | 4892 |
with, and do all things necessary to carry out Chapter 3309. of | 4893 |
the Revised Code. All of its business shall be transacted, all of | 4894 |
its funds invested, all warrants for money drawn and payments | 4895 |
made, and all of its cash, securities, and other property shall be | 4896 |
held in the name of the board, or in the name of its nominee, | 4897 |
provided that nominees are authorized by retirement board | 4898 |
resolution for such purposes. The board may take all appropriate | 4899 |
action to avoid payment by the system or its members of federal or | 4900 |
state income taxes on contributions to the system or amounts | 4901 |
earned on those contributions. | 4902 |
If the Ohio retirement study council establishes a uniform | 4903 |
format for any report the board is required to submit to the | 4904 |
council, the board shall submit the report in that format. | 4905 |
Sec. 3309.041. The school employees retirement board shall do | 4906 |
all of the following: | 4907 |
(A) In consultation with the Ohio ethics commission, review | 4908 |
any existing policy regarding the travel and payment of travel | 4909 |
expenses of members and employees of the school employees | 4910 |
retirement board and adopt rules in accordance with section | 4911 |
3309.04 of the Revised Code establishing a new or revised policy | 4912 |
regarding travel and payment of travel expenses; | 4913 |
(B) If the board intends to award a bonus to any employee of | 4914 |
the board, adopt rules in accordance with section 3309.04 of the | 4915 |
Revised Code establishing a policy regarding employee bonuses; | 4916 |
(C) Provide copies of the rules adopted under divisions (A) | 4917 |
and (B) of this section to each member of the Ohio retirement | 4918 |
study council; | 4919 |
(D) Submit to the Ohio retirement study council a proposed | 4920 |
operating budget, including a travel budget, for the next | 4921 |
immediate fiscal year and adopt that budget not earlier than sixty | 4922 |
days after it is submitted to the council. | 4923 |
Sec. 3309.042. The school employees retirement board shall, | 4924 |
in consultation with the Ohio ethics commission, develop an ethics | 4925 |
policy. The board shall submit this policy to the Ohio retirement | 4926 |
study council for approval. | 4927 |
The council shall review the policy in consultation with the | 4928 |
Ohio ethics commission and, if the council determines that the | 4929 |
policy is adequate, approve the policy. If the council determines | 4930 |
that the policy is inadequate, it shall specify the revisions to | 4931 |
be made and the board shall submit a revised policy. If the | 4932 |
council approves the revised policy, the board shall adopt it. If | 4933 |
not, the board shall make any further revisions required by the | 4934 |
council and adopt the policy. | 4935 |
The board periodically shall provide ethics training to | 4936 |
members and employees of the board. The training shall include | 4937 |
training regarding the requirements and prohibitions of Chapter | 4938 |
102. of the Revised Code and sections 2921.42 and 2921.43 of the | 4939 |
Revised Code and any other training the board considers | 4940 |
appropriate. | 4941 |
The board shall establish a procedure to ensure that each | 4942 |
employee of the board is informed of the procedure for filing a | 4943 |
complaint alleging violation of Chapter 102. of the Revised Code | 4944 |
or section 2921.42 or 2921.43 of the Revised Code with the Ohio | 4945 |
ethics commission or the appropriate prosecuting attorney. | 4946 |
Sec. 3309.043. (A) The school employees retirement board | 4947 |
shall designate a person who is a licensed state retirement system | 4948 |
investment officer to be the chief investment officer for the | 4949 |
school employees retirement system. The board shall notify the | 4950 |
division of securities of the department of commerce in writing of | 4951 |
its designation and of any change in its designation within ten | 4952 |
calendar days of the designation or change. | 4953 |
(B) The chief investment officer shall reasonably supervise | 4954 |
the licensed state retirement system investment officers and other | 4955 |
persons employed by the school employees retirement system with a | 4956 |
view toward preventing violations of Chapter 1707. of the Revised | 4957 |
Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and | 4958 |
following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. | 4959 |
and following, and the "Securities Exchange Act of 1934," 48 Stat. | 4960 |
881, 15 U.S.C. 78a, and following, and the rules and regulations | 4961 |
promulgated under those statutes. This duty of reasonable | 4962 |
supervision shall include the adoption, implementation, and | 4963 |
enforcement of written policies and procedures reasonably designed | 4964 |
to prevent persons employed by the school employees retirement | 4965 |
system from misusing material, nonpublic information in violation | 4966 |
of those laws, rules, and regulations. | 4967 |
For purposes of this division, no chief investment officer | 4968 |
shall be considered to have failed to satisfy the officer's duty | 4969 |
of reasonable supervision if the officer has done all of the | 4970 |
following: | 4971 |
(1) Adopted and implemented written procedures, and a system | 4972 |
for applying the procedures, that would reasonably be expected to | 4973 |
prevent and detect, insofar as practicable, any violation by its | 4974 |
licensed investment officers and other persons employed by the | 4975 |
school employees retirement system; | 4976 |
(2) Reasonably discharged the duties and obligations | 4977 |
incumbent on the chief investment officer by reason of the | 4978 |
established procedures and the system for applying the procedures | 4979 |
when the officer had no reasonable cause to believe that there was | 4980 |
a failure to comply with the procedures and systems; | 4981 |
(3) Reviewed, at least annually, the adequacy of the policies | 4982 |
and procedures established pursuant to this section and the | 4983 |
effectiveness of their implementation. | 4984 |
(C) The chief investment officer shall ensure that securities | 4985 |
transactions are executed in such a manner that the school | 4986 |
employees retirement system's total costs or proceeds in each | 4987 |
transaction are the most favorable under the circumstances. | 4988 |
For purposes of this division, no chief investment officer | 4989 |
shall be considered to have failed to satisfy the officer's duty | 4990 |
of best execution if the officer has done both of the following: | 4991 |
(1) Adopted and implemented a written policy that outlines | 4992 |
the criteria used to select broker-dealers that execute securities | 4993 |
transactions on behalf of the school employees retirement system, | 4994 |
which criteria shall include all of the following: | 4995 |
(a) Commissions charged by the broker-dealer, both in the | 4996 |
aggregate and on a per share basis; | 4997 |
(b) The execution speed and trade settlement capabilities of | 4998 |
the broker-dealer; | 4999 |
(c) The responsiveness, reliability, and integrity of the | 5000 |
broker-dealer; | 5001 |
(d) The nature and value of research provided by the | 5002 |
broker-dealer; | 5003 |
(e) Any special capabilities of the broker-dealer. | 5004 |
(2) Reviewed, at least annually, the performance of | 5005 |
broker-dealers that execute securities transactions on behalf of | 5006 |
the school employees retirement system. | 5007 |
Sec. 3309.05. The school employees retirement board shall | 5008 |
consist of the following seven members: | 5009 |
(A) The auditor of state; | 5010 |
(B) The | 5011 |
(C) Four members, known as employee members, who shall be | 5012 |
members of the school employees retirement system, and who shall | 5013 |
be elected by ballot by the members of the system; | 5014 |
(D) One member, known as the retirant member, who shall be a | 5015 |
former member of the retirement system who is a resident of this | 5016 |
state and currently receiving an age and service retirement | 5017 |
benefit, a disability benefit, or benefits under a plan | 5018 |
established under section 3309.81 of the Revised Code. The | 5019 |
retirant member shall be elected by ballot by former members of | 5020 |
the system who are currently receiving an age and service | 5021 |
retirement benefit, a disability benefit, or benefits under a plan | 5022 |
established under section 3309.81 of the Revised Code; | 5023 |
(E) One member, known as the school board member, who shall | 5024 |
be a member of a city, local, exempted village, or joint | 5025 |
vocational school board district board of education or a member of | 5026 |
an educational service center governing board, but need not be a | 5027 |
member of the retirement system; | 5028 |
(F) One member, known as the school treasurer member, who | 5029 |
shall be the treasurer of a city, local, exempted village, or | 5030 |
joint vocational school board district board of education or | 5031 |
treasurer for an educational service center, but need not be a | 5032 |
member of the retirement system. | 5033 |
Sec. 3309.051. Each newly elected member of the school | 5034 |
employees retirement board and each individual appointed to fill a | 5035 |
vacancy on the board shall, not later than ninety days after | 5036 |
commencing service as a board member, complete the orientation | 5037 |
program component of the retirement board member education program | 5038 |
established under section 171.50 of the Revised Code. | 5039 |
Each member of the board who has served a year or longer as a | 5040 |
board member shall, not less than twice each year, attend one or | 5041 |
more programs that are part of the continuing education component | 5042 |
of the retirement board member education program established under | 5043 |
section 171.50 of the Revised Code. | 5044 |
Sec. 3309.06. (A) Elections for employee and retirant members | 5045 |
of the school employees retirement board shall be held on the | 5046 |
first Monday of March. Terms of office of the employee members and | 5047 |
the retirant member of the board shall be for four years each, | 5048 |
commencing on the first day of July following the election and | 5049 |
ending on the thirtieth day of June. The initial terms of the | 5050 |
retirant member and the new employee member shall commence on July | 5051 |
1, 1984,
and end on June 30, 1988. | 5052 |
(B) The board member who is a school board member and the | 5053 |
board member who is a school treasurer shall each be elected by | 5054 |
ballot for a term of four years at the annual election for | 5055 |
employee and retirant members of the board, as provided in | 5056 |
division (A) of this section. The board member who is a school | 5057 |
board member shall be elected by school board members and the | 5058 |
board member who is a school treasurer shall be elected by school | 5059 |
treasurers regardless of whether they are members of the | 5060 |
retirement system. | 5061 |
The initial school board and school treasurer members shall | 5062 |
be elected at the first annual election that occurs not less than | 5063 |
ninety days after the effective date of this amendment. | 5064 |
Thereafter, the school board member and the school treasurer | 5065 |
members shall be elected to the board at the annual election in | 5066 |
the year in which the terms of the current school board member and | 5067 |
of the school treasurer member would expire. The terms of office | 5068 |
of the school board member and of the school treasurer member | 5069 |
shall begin on the first day of July following the member's | 5070 |
election. | 5071 |
(C) If a vacancy occurs during the
| 5072 |
5073 | |
5074 | |
5075 | |
the election results under section 111.30 of the Revised Code, the | 5076 |
successor member shall hold office until the next board election | 5077 |
that occurs not less than ninety days after the successor member's | 5078 |
election. The successor member shall qualify for board membership | 5079 |
under the same division of section 3309.05 of the Revised Code as | 5080 |
the member's predecessor in office. Elections under this division | 5081 |
shall be conducted under the supervision of the secretary of state | 5082 |
pursuant to section 111.30 of the Revised Code. | 5083 |
(D) Employee members or the retirant member of the board who | 5084 |
fail to attend the meetings of the board for four months or | 5085 |
longer, without being excused, shall be considered as having | 5086 |
resigned and successors shall be elected for their unexpired terms | 5087 |
pursuant to division (C) of this section. If as a result of | 5088 |
changed circumstances the retirant member would no longer qualify | 5089 |
for membership on the board as the retirant member, the office | 5090 |
shall be considered vacant, and a successor retirant member shall | 5091 |
be elected pursuant to division (C) of this section. | 5092 |
Sec. 3309.061. An employee member or retirant member of the | 5093 |
school employees retirement board who is charged with committing a | 5094 |
felony, a theft offense as defined in section 2913.01 of the | 5095 |
Revised Code, or a violation of section 102.02, 102.03, 102.04, | 5096 |
2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or | 5097 |
2921.44 of the Revised Code shall be suspended from participation | 5098 |
on the board for the period during which the charges are pending. | 5099 |
If the charges are dismissed, the member is found not guilty, or | 5100 |
the charges are otherwise resolved in a manner not resulting in | 5101 |
the member being convicted of or pleading guilty to an offense of | 5102 |
that nature, the suspension shall end, and the member may | 5103 |
participate on the board. If the member pleads guilty to or is | 5104 |
convicted of the offense, the position of the member on the board | 5105 |
shall be deemed vacant. A person who has pleaded guilty to or been | 5106 |
convicted of an offense of that nature is ineligible for election | 5107 |
to the office of employee or retirant member of the school | 5108 |
employees retirement board. | 5109 |
The Ohio retirement study council may hold a hearing to | 5110 |
determine whether to remove an employee member or retirant member | 5111 |
of the school employees retirement board who has been suspended | 5112 |
pursuant to this section. If it decides to hold a hearing, the | 5113 |
council shall provide the suspended board member at least seven | 5114 |
days prior notice of the time, date, and place of the hearing. The | 5115 |
suspended board member may be represented by an attorney. At the | 5116 |
hearing the suspended board member, or the suspended board | 5117 |
member's attorney, shall have an opportunity to present evidence, | 5118 |
call witnesses, and cross-examine witnesses. The hearing shall be | 5119 |
open to the public. At the conclusion of the hearing, if the | 5120 |
voting members of the council unanimously vote to remove the | 5121 |
suspended board member, the suspended board member shall be | 5122 |
removed from the board, and the position of the member shall be | 5123 |
deemed vacant. | 5124 |
Sec. 3309.07. (A) All elections for employee or retirant | 5125 |
members of the school employees retirement board shall be held | 5126 |
under the direction of the board in accordance with rules adopted | 5127 |
under section 111.30 of the Revised Code. | 5128 |
(B) Any member of the school employees retirement system, | 5129 |
other than a disability benefit recipient, shall be eligible to be | 5130 |
nominated for election as an employee member of the board who has | 5131 |
been nominated by a petition that is signed by at least five | 5132 |
hundred members | 5133 |
section 111.30 of the Revised Code. The petition shall contain the | 5134 |
signatures of not less than twenty | 5135 |
least ten counties wherein such members are employed. The petition | 5136 |
shall specify the term of office and position. The name of any | 5137 |
member so nominated shall be placed upon the ballot by the board | 5138 |
as a regular candidate. Other names of eligible candidates may at | 5139 |
any election be substituted for the regular candidates by writing | 5140 |
such names upon the ballot. The candidate receiving the highest | 5141 |
number of votes for any term as member of the board shall be | 5142 |
elected for such term on certification of the election results | 5143 |
under section 111.30 of the Revised Code. In any year in which two | 5144 |
employee member positions must be filled, the candidates who | 5145 |
receive the highest and second highest number of votes shall be | 5146 |
elected to the offices on certification of the election results | 5147 |
under section 111.30 of the Revised Code. | 5148 |
(C) Any former member of the school employees retirement | 5149 |
system described in division (D) of section 3309.05 of the Revised | 5150 |
Code is eligible for election as the retirant member of the board | 5151 |
to represent former members currently receiving an age and service | 5152 |
retirement benefit, a disability benefit, or benefits under a plan | 5153 |
established under section 3309.81 of the Revised Code, provided | 5154 |
that such person has been nominated by a petition that is | 5155 |
certified under section 111.30 of the Revised Code and signed by | 5156 |
at least one hundred fifty former members of the system who are | 5157 |
currently receiving an age and service retirement benefit, a | 5158 |
disability benefit, or benefits under a plan established under | 5159 |
section 3309.81 of the Revised Code. The petition shall contain | 5160 |
the signatures of at least ten such recipients from each of at | 5161 |
least five counties wherein recipients of benefits from this | 5162 |
system reside. The petition shall specify the term of office and | 5163 |
position. The name of any person so nominated shall be placed upon | 5164 |
the ballot by the board as a regular candidate. Other names of | 5165 |
eligible candidates may at any election be substituted for the | 5166 |
regular candidates by writing such names upon the ballot. The | 5167 |
candidate receiving the highest number of votes for any term as | 5168 |
member of the board shall be elected for such term on | 5169 |
certification of the election results under section 111.30 of the | 5170 |
Revised Code. | 5171 |
No employee member of the board who retires while a member of | 5172 |
the board shall be eligible to become a retirant member of the | 5173 |
board for three years after the date of the member's retirement. | 5174 |
| 5175 |
3309.06, and 3309.07 of the Revised Code, the school employees | 5176 |
retirement board is not required to hold an election for a | 5177 |
position on the board as an employee member or retirant member if | 5178 |
only one candidate has been nominated for the position by petition | 5179 |
in accordance with section 3309.07 of the Revised Code. The | 5180 |
candidate shall take office as if elected. The term of office | 5181 |
shall be four years beginning on the first day of July following | 5182 |
the date the candidate was nominated. | 5183 |
Sec. 3309.072. (A) As used in this section: | 5184 |
(1) "Campaign committee" means a candidate or a combination | 5185 |
of two or more persons authorized by a candidate to receive | 5186 |
contributions and in-kind contributions and make expenditures on | 5187 |
behalf of the candidate. | 5188 |
(2) "Candidate" means an individual who has been nominated | 5189 |
pursuant to section 3309.07 of the Revised Code for election to | 5190 |
the school employees retirement board. | 5191 |
(3) "Contribution" means a loan, gift, deposit, forgiveness | 5192 |
of indebtedness, donation, advance, payment, transfer of funds or | 5193 |
transfer of anything of value including a transfer of funds from | 5194 |
an inter vivos or testamentary trust or decedent's estate, and the | 5195 |
payment by any person other than the person to whom the services | 5196 |
are rendered for the personal services of another person, which | 5197 |
contribution is made, received, or used for the purpose of | 5198 |
influencing the results of an election to the school employees | 5199 |
retirement board under section 3309.07 of the Revised Code. | 5200 |
"Contribution" does not include: | 5201 |
(a) Services provided without compensation by individuals | 5202 |
volunteering a portion or all of their time on behalf of a person; | 5203 |
(b) Ordinary home hospitality; | 5204 |
(c) The personal expenses of a volunteer paid for by that | 5205 |
volunteer campaign worker. | 5206 |
(4) "Election day" means the following, as appropriate to the | 5207 |
situation: | 5208 |
(a) The first Monday in March of a year for which section | 5209 |
3309.06 of the Revised Code specifies that an election for a | 5210 |
member of the school employees retirement board be held; | 5211 |
(b) If, pursuant to section 3309.071 of the Revised Code, no | 5212 |
election is held, the first Monday in March of a year that the | 5213 |
election would have been held if not for section 3309.071 of the | 5214 |
Revised Code. | 5215 |
(5) "Expenditure" means the disbursement or use of a | 5216 |
contribution for the purpose of influencing the results of an | 5217 |
election to the school employees retirement board under section | 5218 |
3309.07 of the Revised Code. | 5219 |
(6) "In-kind contribution" means anything of value other than | 5220 |
money that is used to influence the results of an election to the | 5221 |
school employees retirement board under section 3309.07 of the | 5222 |
Revised Code or is transferred to or used in support of or in | 5223 |
opposition to a candidate and that is made with the consent of, in | 5224 |
coordination, cooperation, or consultation with, or at the request | 5225 |
or suggestion of the benefited candidate. The financing of the | 5226 |
dissemination, distribution, or republication, in whole or part, | 5227 |
of any broadcast or of any written, graphic, or other form of | 5228 |
campaign materials prepared by the candidate, the candidate's | 5229 |
campaign committee, or their authorized agents is an in-kind | 5230 |
contribution to the candidate and an expenditure by the candidate. | 5231 |
(7) "Personal expenses" includes ordinary expenses for | 5232 |
accommodations, clothing, food, personal motor vehicle or | 5233 |
airplane, and home telephone. | 5234 |
(B) Each candidate who, or whose campaign committee, receives | 5235 |
a contribution or in-kind contribution or makes an expenditure in | 5236 |
connection with the candidate's efforts to be elected to the | 5237 |
school employees retirement board shall file with the secretary of | 5238 |
state two complete, accurate, and itemized statements setting | 5239 |
forth in detail the contributions, in-kind contributions, and | 5240 |
expenditures. The statements shall be filed regardless of whether, | 5241 |
pursuant to section 3309.071 of the Revised Code, no election is | 5242 |
held. The statements shall be made on a form prescribed under | 5243 |
section 111.30 of the Revised Code. | 5244 |
The first statement shall be filed not later than four p.m. | 5245 |
on the day that is twelve days before election day. The second | 5246 |
statement shall be filed not sooner than the day that is eight | 5247 |
days after election day and not later than thirty-eight days after | 5248 |
election day. The first statement shall reflect contributions and | 5249 |
in-kind contributions received and expenditures made to the close | 5250 |
of business on the twentieth day before election day. The second | 5251 |
statement shall reflect contributions and in-kind contributions | 5252 |
received and expenditures made during the period beginning on the | 5253 |
nineteenth day before election day and ending on the close of | 5254 |
business on the seventh day after election day. | 5255 |
(C) Each individual, partnership, or other entity who makes | 5256 |
an expenditure in connection with the candidate's efforts to be | 5257 |
elected to the school employees retirement board shall file with | 5258 |
the secretary of state two complete, accurate, and itemized | 5259 |
statements setting forth in detail the expenditures. The | 5260 |
statements shall be filed regardless of whether, pursuant to | 5261 |
section 3309.071 of the Revised Code, no election is held. The | 5262 |
statements shall be made on a form prescribed under section 111.30 | 5263 |
of the Revised Code. | 5264 |
The first statement shall be filed not later than four p.m. | 5265 |
on the day that is twelve days before election day. The second | 5266 |
statement shall be filed not sooner than the day that is eight | 5267 |
days after election day and not later than thirty-eight days after | 5268 |
election day. The first statement shall reflect expenditures made | 5269 |
to the close of business on the twentieth day before election day. | 5270 |
The second statement shall reflect expenditures made during the | 5271 |
period beginning on the nineteenth day before election day and | 5272 |
ending on the close of business on the seventh day after election | 5273 |
day. | 5274 |
Sec. 3309.073. (A) No person shall knowingly fail to file a | 5275 |
complete and accurate statement in accordance with section | 5276 |
3309.072 of the Revised Code. | 5277 |
(B) No person, during the course of a person seeking | 5278 |
nomination for, and during any campaign for, election to the | 5279 |
school employees retirement board, shall knowingly and with intent | 5280 |
to affect the nomination or the outcome of the campaign do any of | 5281 |
the following by means of campaign materials, an advertisement on | 5282 |
radio or television or in a newspaper or periodical, a public | 5283 |
speech, press release, or otherwise: | 5284 |
(1) With regard to a candidate, identify the candidate in a | 5285 |
manner that implies that the candidate is a member of the board or | 5286 |
use the term "re-elect" when the candidate is not currently a | 5287 |
member of the board; | 5288 |
(2) Make a false statement concerning the formal schooling or | 5289 |
training completed or attempted by a candidate; a degree, diploma, | 5290 |
certificate, scholarship, grant, award, prize, or honor received, | 5291 |
earned, or held by a candidate; or the period of time during which | 5292 |
a candidate attended any school, college, community technical | 5293 |
school, or institution; | 5294 |
(3) Make a false statement concerning the professional, | 5295 |
occupational, or vocational licenses held by a candidate, or | 5296 |
concerning any position the candidate held for which the candidate | 5297 |
received a salary or wages; | 5298 |
(4) Make a false statement that a candidate or public | 5299 |
official has been indicted or convicted of a theft offense, | 5300 |
extortion, or other crime involving financial corruption or moral | 5301 |
turpitude; | 5302 |
(5) Make a statement that a candidate has been indicted for | 5303 |
any crime or has been the subject of a finding by the Ohio | 5304 |
elections commission without disclosing the outcome of any legal | 5305 |
proceedings resulting from the indictment or finding; | 5306 |
(6) Make a false statement that a candidate or official has a | 5307 |
record of treatment or confinement for mental disorder; | 5308 |
(7) Make a false statement that a candidate or official has | 5309 |
been subjected to military discipline for criminal misconduct or | 5310 |
dishonorably discharged from the armed services; | 5311 |
(8) Falsely identify the source of a statement, issue | 5312 |
statements under the name of another person without authorization, | 5313 |
or falsely state the endorsement of or opposition to a candidate | 5314 |
by a person or publication; | 5315 |
(9) Make a false statement concerning the voting record of a | 5316 |
candidate or public official; | 5317 |
(10) Post, publish, circulate, distribute, or otherwise | 5318 |
disseminate a false statement concerning a candidate, either | 5319 |
knowing the same to be false or with reckless disregard of whether | 5320 |
it was false or not, if the statement is designed to promote the | 5321 |
election, nomination, or defeat of the candidate. | 5322 |
Sec. 3309.074. The secretary of state, or any person acting | 5323 |
on personal knowledge and subject to the penalties of perjury, may | 5324 |
file a complaint with the Ohio elections commission alleging a | 5325 |
violation of section 3309.073 of the Revised Code. The complaint | 5326 |
shall be made on a form prescribed and provided by the commission. | 5327 |
On receipt of a complaint under this section, the commission | 5328 |
shall hold a hearing open to the public to determine whether the | 5329 |
violation alleged in the complaint has occurred. The commission | 5330 |
may administer oaths and issue subpoenas to any person in the | 5331 |
state compelling the attendance of witnesses and the production of | 5332 |
relevant papers, books, accounts, and reports. On the refusal of | 5333 |
any person to obey a subpoena or to be sworn or to answer as a | 5334 |
witness, the commission may apply to the court of common pleas of | 5335 |
Franklin county under section 2705.03 of the Revised Code. The | 5336 |
court shall hold contempt proceedings in accordance with Chapter | 5337 |
2705. of the Revised Code. | 5338 |
The commission shall provide the person accused of the | 5339 |
violation at least seven days prior notice of the time, date, and | 5340 |
place of the hearing. The accused may be represented by an | 5341 |
attorney and shall have an opportunity to present evidence, call | 5342 |
witnesses, and cross-examine witnesses. | 5343 |
At the hearing, the commission shall determine whether the | 5344 |
violation alleged in the complaint has occurred. If the commission | 5345 |
determines that a violation of division (A) of section 3309.073 of | 5346 |
the Revised Code has occurred, the commission shall either impose | 5347 |
a fine under section 3309.99 of the Revised Code or enter a | 5348 |
finding that good cause has been shown not to impose the fine. If | 5349 |
the commission determines that a violation of division (B) of | 5350 |
section 3309.073 of the Revised Code has occurred, the commission | 5351 |
shall impose the fine described in section 3309.99 of the Revised | 5352 |
Code, refer the matter to the appropriate prosecutor, or enter a | 5353 |
finding that good cause has been shown to not impose a fine or | 5354 |
refer the matter to the appropriate prosecutor. | 5355 |
Sec. 3309.14. The school employees retirement board shall | 5356 |
secure the service of such technical and administrative employees | 5357 |
as are necessary for the transaction of the business of the school | 5358 |
employees retirement system. | 5359 |
Effective ninety days after the effective date of this | 5360 |
amendment, the board may not employ a state retirement system | 5361 |
investment officer, as defined in section 1707.01 of the Revised | 5362 |
Code, who does not hold a valid state retirement system investment | 5363 |
officer license issued by the division of securities in the | 5364 |
department of commerce. | 5365 |
The compensation of all persons engaged by the board and all | 5366 |
other expenses of the board necessary for the proper operation of | 5367 |
the system shall be paid at such rates and in such amounts as the | 5368 |
board approves. Every expense voucher of an employee, officer, or | 5369 |
board member of the school employees retirement system shall | 5370 |
itemize all purchases and expenditures. | 5371 |
The board shall receive and act upon all applications for | 5372 |
retirement under Chapter 3309. of the Revised Code, and shall | 5373 |
provide for the payment of all retirement allowances and other | 5374 |
benefits and shall make other expenditures required or authorized | 5375 |
by this chapter. | 5376 |
Sec. 3309.157. The attorney general may maintain a civil | 5377 |
action under section 109.98 of the Revised Code against a member | 5378 |
of the school employees retirement board for harm resulting from a | 5379 |
breach of the member's fiduciary duty. | 5380 |
Sec. 3309.22. (A)(1) As used in this division, "personal | 5381 |
history record" means information maintained by the board on an | 5382 |
individual who is a member, former member, contributor, former | 5383 |
contributor, retirant, or beneficiary that includes the address, | 5384 |
telephone number, social security number, record of contributions, | 5385 |
correspondence with the system, and other information the board | 5386 |
determines to be confidential. | 5387 |
(2) The records of the board shall be open to public | 5388 |
inspection, except for the following, which shall be excluded, | 5389 |
except with the written authorization of the individual concerned: | 5390 |
(a) The individual's statement of previous service and other | 5391 |
information as provided for in section 3309.28 of the Revised | 5392 |
Code; | 5393 |
(b) Any information identifying by name and address the | 5394 |
amount of a monthly allowance or benefit paid to the individual; | 5395 |
(c) The individual's personal history record. | 5396 |
(B) All medical reports and recommendations required by the | 5397 |
system are privileged except that copies of such medical reports | 5398 |
or recommendations shall be made available to the personal | 5399 |
physician, attorney, or authorized agent of the individual | 5400 |
concerned upon written release received from the individual or the | 5401 |
individual's agent, or when necessary for the proper | 5402 |
administration of the fund, to the board assigned physician. | 5403 |
(C) Any person who is a contributor of the system shall be | 5404 |
furnished, on written request, with a statement of the amount to | 5405 |
the credit of the person's account. The board need not answer more | 5406 |
than one such request of a person in any one year. | 5407 |
(D) Notwithstanding the exceptions to public inspection in | 5408 |
division (A)(2) of this section, the board may furnish the | 5409 |
following information: | 5410 |
(1) If a member, former member, contributor, former | 5411 |
contributor, or retirant is subject to an order issued under | 5412 |
section 2907.15 of the Revised Code or is convicted of or pleads | 5413 |
guilty to a violation of section 2921.41 of the Revised Code, on | 5414 |
written request of a prosecutor as defined in section 2935.01 of | 5415 |
the Revised Code, the board shall furnish to the prosecutor the | 5416 |
information requested from the individual's personal history | 5417 |
record. | 5418 |
(2) Pursuant to a court or administrative order issued under | 5419 |
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the | 5420 |
Revised Code, the board shall furnish to a court or child support | 5421 |
enforcement agency the information required under that section. | 5422 |
(3) At the written request of any person, the board shall | 5423 |
provide to the person a list of the names and addresses of | 5424 |
members, former members, retirants, contributors, former | 5425 |
contributors, or beneficiaries. The costs of compiling, copying, | 5426 |
and mailing the list shall be paid by such person. | 5427 |
(4) Within fourteen days after receiving from the director of | 5428 |
job and family services a list of the names and social security | 5429 |
numbers of recipients of public assistance pursuant to section | 5430 |
5101.181 of the Revised Code, the board shall inform the auditor | 5431 |
of state of the name, current or most recent employer address, and | 5432 |
social security number of each contributor whose name and social | 5433 |
security number are the same as that of a person whose name or | 5434 |
social security number was submitted by the director. The board | 5435 |
and its employees shall, except for purposes of furnishing the | 5436 |
auditor of state with information required by this section, | 5437 |
preserve the confidentiality of recipients of public assistance in | 5438 |
compliance with division (A) of section 5101.181 of the Revised | 5439 |
Code. | 5440 |
(5) The system shall comply with orders issued under section | 5441 |
3105.87 of the Revised Code. | 5442 |
On the written request of an alternate payee, as defined in | 5443 |
section 3105.80 of the Revised Code, the system shall furnish to | 5444 |
the alternate payee information on the amount and status of any | 5445 |
amounts payable to the alternate payee under an order issued under | 5446 |
section 3105.171 or 3105.65 of the Revised Code. | 5447 |
(6) At the request of any person, the board shall make | 5448 |
available to the person copies of all documents, including | 5449 |
resumes, in the board's possession regarding filling a vacancy of | 5450 |
an employee member or retirant member of the board. The person who | 5451 |
made the request shall pay the cost of compiling, copying, and | 5452 |
mailing the documents. The information described in this division | 5453 |
is a public record. | 5454 |
(7) The board shall furnish the personal history records kept | 5455 |
by the board to the secretary of state for the purposes of | 5456 |
certifying an election pursuant to section 111.30 of the Revised | 5457 |
Code. | 5458 |
(E) A statement that contains information obtained from the | 5459 |
system's records that is signed by an officer of the retirement | 5460 |
system and to which the system's official seal is affixed, or | 5461 |
copies of the system's records to which the signature and seal are | 5462 |
attached, shall be received as true copies of the system's records | 5463 |
in any court or before any officer of this state. | 5464 |
Sec. 3309.99. (A) Whoever violates division (A) of section | 5465 |
3309.073 of the Revised Code shall be fined not more than one | 5466 |
hundred dollars for each day of the violation. | 5467 |
(B) Whoever violates division (B) of section 3309.073 of the | 5468 |
Revised Code shall be imprisoned for not more than six months or | 5469 |
fined not more than five thousand dollars, or both. | 5470 |
(C) Fines imposed by the Ohio elections commission under this | 5471 |
section shall be paid into the Ohio elections commission fund | 5472 |
created under section 3513.10 of the Revised Code. | 5473 |
Sec. 5505.04. (A) The general administration and management | 5474 |
of the state highway patrol retirement system and the making | 5475 |
effective of this chapter are hereby vested in the state highway | 5476 |
patrol retirement board. The board may sue and be sued, plead and | 5477 |
be impleaded, contract and be contracted with, and do all things | 5478 |
necessary to carry out this chapter. | 5479 |
The board shall consist of the auditor of state, the director | 5480 |
of administrative services, the treasurer of state, the | 5481 |
superintendent of the state highway patrol, a | 5482 |
retirant member who is a resident of this state, and four | 5483 |
5484 |
The board shall annually elect a chairperson and | 5485 |
vice-chairperson from among its members. The vice-chairperson | 5486 |
shall act as chairperson in the absence of the chairperson. A | 5487 |
majority of the members of the board shall constitute a quorum and | 5488 |
any action taken shall be approved by four or more of the members. | 5489 |
The board shall meet not less than once each year, upon sufficient | 5490 |
notice to the members. All meetings of the board shall be open to | 5491 |
the public except executive sessions as set forth in division (G) | 5492 |
of section 121.22 of the Revised Code, and any portions of any | 5493 |
sessions discussing medical records or the degree of disability of | 5494 |
a member excluded from public inspection by this section. | 5495 |
(B) The attorney general shall prescribe procedures for the | 5496 |
adoption of rules authorized under this chapter, consistent with | 5497 |
the provision of section 111.15 of the Revised Code under which | 5498 |
all rules shall be filed in order to be effective. Such procedures | 5499 |
shall establish methods by which notice of proposed rules are | 5500 |
given to interested parties and rules adopted by the board | 5501 |
published and otherwise made available. When it files a rule with | 5502 |
the joint committee on agency rule review pursuant to section | 5503 |
111.15 of the Revised Code, the board shall submit to the Ohio | 5504 |
retirement study council a copy of the full text of the rule, and | 5505 |
if applicable, a copy of the rule summary and fiscal analysis | 5506 |
required by division (B) of section 127.18 of the Revised Code. | 5507 |
(C)(1) | 5508 |
5509 | |
5510 | |
5511 | |
5512 | |
5513 | |
5514 | |
5515 |
| 5516 |
5517 | |
5518 | |
5519 | |
5520 | |
5521 |
| 5522 |
5523 | |
5524 | |
5525 | |
5526 | |
5527 |
| 5528 |
5529 | |
5530 | |
5531 | |
5532 | |
5533 | |
5534 | |
5535 | |
5536 | |
5537 |
| 5538 |
means information maintained by the board on an individual who is | 5539 |
a member, former member, retirant, or beneficiary that includes | 5540 |
the address, telephone number, social security number, record of | 5541 |
contributions, correspondence with the system, and other | 5542 |
information the board determines to be confidential. | 5543 |
(2) The records of the board shall be open to public | 5544 |
inspection, except for the following which shall be excluded: the | 5545 |
member's, former member's, retirant's, or beneficiary's personal | 5546 |
history record and the amount of a monthly allowance or benefit | 5547 |
paid to a retirant, beneficiary, or survivor, except with the | 5548 |
written authorization of the individual concerned. All medical | 5549 |
reports and recommendations are privileged except that copies of | 5550 |
such medical reports or recommendations shall be made available to | 5551 |
the individual's personal physician, attorney, or authorized agent | 5552 |
upon written release received from such individual or such | 5553 |
individual's agent, or when necessary for the proper | 5554 |
administration of the fund to the board-assigned physician. | 5555 |
| 5556 |
division | 5557 |
following information: | 5558 |
(1) If a member, former member, or retirant is subject to an | 5559 |
order issued under section 2907.15 of the Revised Code or is | 5560 |
convicted of or pleads guilty to a violation of section 2921.41 of | 5561 |
the Revised Code, on written request of a prosecutor as defined in | 5562 |
section 2935.01 of the Revised Code, the board shall furnish to | 5563 |
the prosecutor the information requested from the individual's | 5564 |
personal history record. | 5565 |
(2) Pursuant to a court order issued under Chapters 3119., | 5566 |
3121., and 3123. of the Revised Code, the board shall furnish to a | 5567 |
court or child support enforcement agency the information required | 5568 |
under those chapters. | 5569 |
(3) At the written request of any nonprofit organization or | 5570 |
association providing services to retirement system members, | 5571 |
retirants, or beneficiaries, the board shall provide to the | 5572 |
organization or association a list of the names and addresses of | 5573 |
members, former members, retirants, or beneficiaries if the | 5574 |
organization or association agrees to use such information solely | 5575 |
in accordance with its stated purpose of providing services to | 5576 |
such individuals and not for the benefit of other persons, | 5577 |
organizations, or associations. The costs of compiling, copying, | 5578 |
and mailing the list shall be paid by such entity. | 5579 |
(4) Within fourteen days after receiving from the director of | 5580 |
job and family services a list of the names and social security | 5581 |
numbers of recipients of public assistance pursuant to section | 5582 |
5101.181 of the Revised Code, the board shall inform the auditor | 5583 |
of state of the name, current or most recent employer address, and | 5584 |
social security number of each member whose name and social | 5585 |
security number are the same as those of a person whose name or | 5586 |
social security number was submitted by the director. The board | 5587 |
and its employees, except for purposes of furnishing the auditor | 5588 |
of state with information required by this section, shall preserve | 5589 |
the confidentiality of recipients of public assistance in | 5590 |
compliance with division (A) of section 5101.181 of the Revised | 5591 |
Code. | 5592 |
(5) The system shall comply with orders issued under section | 5593 |
3105.87 of the Revised Code. | 5594 |
On the written request of an alternate payee, as defined in | 5595 |
section 3105.80 of the Revised Code, the system shall furnish to | 5596 |
the alternate payee information on the amount and status of any | 5597 |
amounts payable to the alternate payee under an order issued under | 5598 |
section 3105.171 or 3105.65 of the Revised Code. | 5599 |
(6) At the request of any person, the board shall make | 5600 |
available to the person copies of all documents, including | 5601 |
resumes, in the board's possession regarding filling a vacancy of | 5602 |
an employee member or retirant member of the board. The person who | 5603 |
made the request shall pay the cost of compiling, copying, and | 5604 |
mailing the documents. The information described in this division | 5605 |
is a public record. | 5606 |
(7) The board shall furnish the personal history records kept | 5607 |
by the board to the secretary of state for the purposes of | 5608 |
certifying an election pursuant to section 111.30 of the Revised | 5609 |
Code. | 5610 |
| 5611 |
the system's records that is certified and signed by an officer of | 5612 |
the retirement system and to which the system's official seal is | 5613 |
affixed, or copies of the system's records to which the signature | 5614 |
and seal are attached, shall be received as true copies of the | 5615 |
system's records in any court or before any officer of this state. | 5616 |
Sec. 5505.041. All elections for retirant member and employee | 5617 |
members of the state highway patrol retirement board shall be held | 5618 |
under the direction of the board in accordance with rules adopted | 5619 |
under section 111.30 of the Revised Code. A person who at the time | 5620 |
of retirement is an employee member of the board is not eligible | 5621 |
to become a retirant member of the board until three years after | 5622 |
the person's retirement date. Service and disability retirants may | 5623 |
vote in elections for the retirant member of the board. | 5624 |
Contributing members may vote in elections for the employee member | 5625 |
of the board. | 5626 |
On certification of the election results under section 111.30 | 5627 |
of the Revised Code, the person elected as the retirant member of | 5628 |
the board or an employee member of the board shall serve a | 5629 |
four-year term beginning on the first day of August following the | 5630 |
election. | 5631 |
Sec. 5505.042. Except as provided in section 5505.043 of the | 5632 |
Revised Code, any vacancy occurring in the term of the retirant | 5633 |
member of the state highway patrol retirement board or an employee | 5634 |
member of the board shall be filled by an election conducted in | 5635 |
the same manner as other retirant member and employee member | 5636 |
elections under section 5505.041 of the Revised Code. On | 5637 |
certification of the election results under section 111.30 of the | 5638 |
Revised Code, the retirant member or employee member elected shall | 5639 |
hold office until the next board election that occurs not less | 5640 |
than ninety days after the member's election. | 5641 |
Sec. 5505.043. The state highway patrol retirement board is | 5642 |
not required to hold an election for a position on the board as a | 5643 |
retirant member, employee member, or vacancy for a retirant member | 5644 |
or employee member if only one candidate has been nominated for | 5645 |
the position or vacancy in accordance with rules governing the | 5646 |
election adopted under section 111.30 of the Revised Code. The | 5647 |
candidate shall take office as if elected. In the case of a | 5648 |
retirant member or employee member, the term of office shall be | 5649 |
four years beginning in August of the year the candidate was | 5650 |
nominated. In the case of a vacancy, the candidate shall fill the | 5651 |
unexpired term. | 5652 |
Sec. 5505.044. (A) As used in this section: | 5653 |
(1) "Campaign committee" means a candidate or a combination | 5654 |
of two or more persons authorized by a candidate to receive | 5655 |
contributions and in-kind contributions and make expenditures on | 5656 |
behalf of the candidate. | 5657 |
(2) "Candidate" means an individual who has been nominated in | 5658 |
accordance with rules adopted under section 111.30 of the Revised | 5659 |
Code for election to the state highway patrol retirement board. | 5660 |
(3) "Contribution" means a loan, gift, deposit, forgiveness | 5661 |
of indebtedness, donation, advance, payment, transfer of funds or | 5662 |
transfer of anything of value including a transfer of funds from | 5663 |
an inter vivos or testamentary trust or decedent's estate, and the | 5664 |
payment by any person other than the person to whom the services | 5665 |
are rendered for the personal services of another person, which | 5666 |
contribution is made, received, or used for the purpose of | 5667 |
influencing the results of an election to the state highway patrol | 5668 |
retirement board under section 5505.041 or 5505.042 of the Revised | 5669 |
Code. "Contribution" does not include: | 5670 |
(a) Services provided without compensation by individuals | 5671 |
volunteering a portion or all of their time on behalf of a person; | 5672 |
(b) Ordinary home hospitality; | 5673 |
(c) The personal expenses of a volunteer paid for by that | 5674 |
volunteer campaign worker. | 5675 |
(4) "Election day" means the following, as appropriate to the | 5676 |
situation: | 5677 |
(a) The last day that ballots for an election to the state | 5678 |
highway patrol retirement board under section 5505.041 or 5505.042 | 5679 |
of the Revised Code may be returned in order for the ballot to be | 5680 |
counted; | 5681 |
(b) If, pursuant to section 5505.043 of the Revised Code, no | 5682 |
election is held, the last day that ballots would have been | 5683 |
required to be returned in order to be counted if an election was | 5684 |
to be held under section 5505.041 or 5505.042 of the Revised Code. | 5685 |
(5) "Expenditure" means the disbursement or use of a | 5686 |
contribution for the purpose of influencing the results of an | 5687 |
election to the state highway patrol retirement board under | 5688 |
section 5505.041 or 5505.042 of the Revised Code. | 5689 |
(6) "In-kind contribution" means anything of value other than | 5690 |
money that is used to influence the results of an election to the | 5691 |
state highway patrol retirement board under section 5505.041 or | 5692 |
5505.042 of the Revised Code or is transferred to or used in | 5693 |
support of or in opposition to a candidate and that is made with | 5694 |
the consent of, in coordination, cooperation, or consultation | 5695 |
with, or at the request or suggestion of the benefited candidate. | 5696 |
The financing of the dissemination, distribution, or | 5697 |
republication, in whole or in part, of any broadcast or of any | 5698 |
written, graphic, or other form of campaign materials prepared by | 5699 |
the candidate, the candidate's campaign committee, or their | 5700 |
authorized agents is an in-kind contribution to the candidate and | 5701 |
an expenditure by the candidate. | 5702 |
(7) "Personal expenses" includes ordinary expenses for | 5703 |
accommodations, clothing, food, personal motor vehicle or | 5704 |
airplane, and home telephone. | 5705 |
(B) Each candidate who, or whose campaign committee, receives | 5706 |
a contribution or in-kind contribution or makes an expenditure in | 5707 |
connection with the candidate's efforts to be elected to the state | 5708 |
highway patrol retirement board shall file with the secretary of | 5709 |
state two complete, accurate, and itemized statements setting | 5710 |
forth in detail the contributions, in-kind contributions, and | 5711 |
expenditures. The statements shall be filed regardless of whether | 5712 |
an election is held or, pursuant to section 5505.043 of the | 5713 |
Revised Code, an election is not held. The statements shall be | 5714 |
made on a form prescribed under section 111.30 of the Revised | 5715 |
Code. The first statement shall be filed not later than four p.m. | 5716 |
on the day that is twelve days before election day. The second | 5717 |
statement shall be filed not sooner than the day that is eight | 5718 |
days after election day and not later than thirty-eight days after | 5719 |
election day. The first statement shall reflect contributions and | 5720 |
in-kind contributions received and expenditures made to the close | 5721 |
of business on the twentieth day before election day. The second | 5722 |
statement shall reflect contributions and in-kind contributions | 5723 |
received and expenditures made during the period beginning on the | 5724 |
nineteenth day before election day and ending on the close of | 5725 |
business on the seventh day after election day. | 5726 |
(C) Each individual, partnership, or other entitywho makes | 5727 |
an expenditure in connection with the candidate's efforts to be | 5728 |
elected to the state highway patrol retirement board shall file | 5729 |
with the secretary of state two complete, accurate, and itemized | 5730 |
statements setting forth in detail the expenditures. The | 5731 |
statements shall be filed regardless of whether an election is | 5732 |
held or, pursuant to section 5505.043 of the Revised Code, an | 5733 |
election is not held. The statements shall be made on a form | 5734 |
prescribed under section 111.30 of the Revised Code. | 5735 |
The first statement shall be filed not later than four p.m. | 5736 |
on the day that is twelve days before election day. The second | 5737 |
statement shall be filed not sooner than the day that is eight | 5738 |
days after election day and not later than thirty-eight days after | 5739 |
election day. The first statement shall reflect expenditures made | 5740 |
to the close of business on the twentieth day before election day. | 5741 |
The second statement shall reflect expenditures made during the | 5742 |
period beginning on the nineteenth day before election day and | 5743 |
ending on the close of business on the seventh day after election | 5744 |
day. | 5745 |
Sec. 5505.045. (A) No person shall knowingly fail to file a | 5746 |
complete and accurate statement in accordance with section | 5747 |
5505.044 of the Revised Code. | 5748 |
(B) No person, during the course of a person seeking | 5749 |
nomination for, and during any campaign for, election to the state | 5750 |
highway patrol retirement board, shall knowingly and with intent | 5751 |
to affect the nomination or the outcome of the campaign do any of | 5752 |
the following by means of campaign materials, an advertisement on | 5753 |
radio or television or in a newspaper or periodical, a public | 5754 |
speech, press release, or otherwise: | 5755 |
(1) With regard to a candidate, identify the candidate in a | 5756 |
manner that implies that the candidate is a member of the board or | 5757 |
use the term "re-elect" when the candidate is not currently a | 5758 |
member of the board; | 5759 |
(2) Make a false statement concerning the formal schooling or | 5760 |
training completed or attempted by a candidate; a degree, diploma, | 5761 |
certificate, scholarship, grant, award, prize, or honor received, | 5762 |
earned, or held by a candidate; or the period of time during which | 5763 |
a candidate attended any school, college, community technical | 5764 |
school, or institution; | 5765 |
(3) Make a false statement concerning the professional, | 5766 |
occupational, or vocational licenses held by a candidate, or | 5767 |
concerning any position the candidate held for which the candidate | 5768 |
received a salary or wages; | 5769 |
(4) Make a false statement that a candidate or public | 5770 |
official has been indicted or convicted of a theft offense, | 5771 |
extortion, or other crime involving financial corruption or moral | 5772 |
turpitude; | 5773 |
(5) Make a statement that a candidate has been indicted for | 5774 |
any crime or has been the subject of a finding by the Ohio | 5775 |
elections commission without disclosing the outcome of any legal | 5776 |
proceedings resulting from the indictment or finding; | 5777 |
(6) Make a false statement that a candidate or official has a | 5778 |
record of treatment or confinement for mental disorder; | 5779 |
(7) Make a false statement that a candidate or official has | 5780 |
been subjected to military discipline for criminal misconduct or | 5781 |
dishonorably discharged from the armed services; | 5782 |
(8) Falsely identify the source of a statement, issue | 5783 |
statements under the name of another person without authorization, | 5784 |
or falsely state the endorsement of or opposition to a candidate | 5785 |
by a person or publication; | 5786 |
(9) Make a false statement concerning the voting record of a | 5787 |
candidate or public official; | 5788 |
(10) Post, publish, circulate, distribute, or otherwise | 5789 |
disseminate a false statement concerning a candidate, either | 5790 |
knowing the same to be false or with reckless disregard of whether | 5791 |
it was false or not, if the statement is designed to promote the | 5792 |
election, nomination, or defeat of the candidate. | 5793 |
Sec. 5505.046. The secretary of state, or any person acting | 5794 |
on personal knowledge and subject to the penalties of perjury, may | 5795 |
file a complaint with the Ohio elections commission alleging a | 5796 |
violation of section 5505.045 of the Revised Code. The complaint | 5797 |
shall be made on a form prescribed and provided by the commission. | 5798 |
On receipt of a complaint under this section, the commission | 5799 |
shall hold a hearing open to the public to determine whether the | 5800 |
violation alleged in the complaint has occurred. The commission | 5801 |
may administer oaths and issue subpoenas to any person in the | 5802 |
state compelling the attendance of witnesses and the production of | 5803 |
relevant papers, books, accounts, and reports. On the refusal of | 5804 |
any person to obey a subpoena or to be sworn or to answer as a | 5805 |
witness, the commission may apply to the court of common pleas of | 5806 |
Franklin county under section 2705.03 of the Revised Code. The | 5807 |
court shall hold contempt proceedings in accordance with Chapter | 5808 |
2705. of the Revised Code. | 5809 |
The commission shall provide the person accused of the | 5810 |
violation at least seven days prior notice of the time, date, and | 5811 |
place of the hearing. The accused may be represented by an | 5812 |
attorney and shall have an opportunity to present evidence, call | 5813 |
witnesses, and cross-examine witnesses. | 5814 |
At the hearing, the commission shall determine whether the | 5815 |
violation alleged in the complaint has occurred. If the commission | 5816 |
determines that a violation of division (A) of section 5505.045 of | 5817 |
the Revised Code has occurred, the commission shall either impose | 5818 |
a fine under section 5505.99 of the Revised Code or enter a | 5819 |
finding that good cause has been shown not to impose the fine. If | 5820 |
the commission determines that a violation of division (B) of | 5821 |
section 5505.045 of the Revised Code has occurred, the commission | 5822 |
shall impose the fine described in section 5505.99 of the Revised | 5823 |
Code, refer the matter to the appropriate prosecutor, or enter a | 5824 |
finding that good cause has been shown to not impose a fine or | 5825 |
refer the matter to the appropriate prosecutor. | 5826 |
Sec. 5505.048. An employee member or retirant member of the | 5827 |
state highway patrol retirement board who is charged with | 5828 |
committing a felony, a theft offense as defined in section 2913.01 | 5829 |
of the Revised Code, or a violation of section 102.02, 102.03, | 5830 |
102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, | 5831 |
2921.43, or 2921.44 of the Revised Code shall be suspended from | 5832 |
participation on the board for the period during which the charges | 5833 |
are pending. If the charges are dismissed, the member is found not | 5834 |
guilty, or the charges are otherwise resolved in a manner not | 5835 |
resulting in the member being convicted of or pleading guilty to | 5836 |
an offense of that nature, the suspension shall end, and the | 5837 |
member may participate on the board. If the member pleads guilty | 5838 |
to or is convicted of the offense, the position of the member on | 5839 |
the board shall be deemed vacant. A person who has pleaded guilty | 5840 |
to or been convicted of an offense of that nature is ineligible | 5841 |
for election to the office of employee member or retirant member | 5842 |
of the state highway patrol retirement board. | 5843 |
The Ohio retirement study council may hold a hearing to | 5844 |
determine whether to remove an employee member or retirant member | 5845 |
of the state highway patrol retirement board who has been | 5846 |
suspended pursuant to this section. If it decides to hold a | 5847 |
hearing, the council shall provide the suspended board member at | 5848 |
least seven days prior notice of the time, date, and place of the | 5849 |
hearing. The suspended board member may be represented by an | 5850 |
attorney. At the hearing, the suspended board member, or the | 5851 |
suspended board member's attorney, shall have an opportunity to | 5852 |
present evidence, call witnesses, and cross-examine witnesses. The | 5853 |
hearing shall be open to the public. At the conclusion of the | 5854 |
hearing, if the voting members of the council unanimously vote to | 5855 |
remove the suspended board member, the suspended board member | 5856 |
shall be removed from the board, and the position of the member | 5857 |
shall be deemed vacant. | 5858 |
Sec. 5505.062. The state highway patrol retirement board | 5859 |
shall do all of the following: | 5860 |
(A) In consultation with the Ohio ethics commission, review | 5861 |
any existing policy regarding the travel and payment of travel | 5862 |
expenses of members and employees of the state highway patrol | 5863 |
retirement board and adopt rules in accordance with section | 5864 |
5505.04 of the Revised Code establishing a new or revised policy | 5865 |
regarding travel and payment of travel expenses; | 5866 |
(B) If the board intends to award a bonus to any employee of | 5867 |
the board, adopt rules in accordance with section 5505.04 of the | 5868 |
Revised Code establishing a policy regarding employee bonuses; | 5869 |
(C) Provide copies of the rules adopted under divisions (A) | 5870 |
and (B) of this section to each member of the Ohio retirement | 5871 |
study council; | 5872 |
(D) Submit to the Ohio retirement study council a proposed | 5873 |
operating budget, including a travel budget, for the next | 5874 |
immediate fiscal year and adopt that budget not earlier than sixty | 5875 |
days after it is submitted to the council. | 5876 |
Sec. 5505.063. The state highway patrol retirement board | 5877 |
shall, in consultation with the Ohio ethics commission, develop an | 5878 |
ethics policy. The board shall submit this policy to the Ohio | 5879 |
retirement study council for approval. | 5880 |
The council shall review the policy in consultation with the | 5881 |
Ohio ethics commission and, if the council determines that the | 5882 |
policy is adequate, approve the policy. If the council determines | 5883 |
that the policy is inadequate, it shall specify the revisions to | 5884 |
be made and the board shall submit a revised policy. If the | 5885 |
council approves the revised policy, the board shall adopt it. If | 5886 |
not, the board shall make any further revisions required by the | 5887 |
council and adopt the policy. | 5888 |
The board periodically shall provide ethics training to | 5889 |
members and employees of the board. The training shall include | 5890 |
training regarding the requirements and prohibitions of Chapter | 5891 |
102. of the Revised Code and sections 2921.42 and 2921.43 of the | 5892 |
Revised Code and any other training the board considers | 5893 |
appropriate. | 5894 |
The board shall establish a procedure to ensure that each | 5895 |
employee of the board is informed of the procedure for filing a | 5896 |
complaint alleging violation of Chapter 102. of the Revised Code | 5897 |
or section 2921.42 or 2921.43 of the Revised Code with the Ohio | 5898 |
ethics commission or the appropriate prosecuting attorney. | 5899 |
Sec. 5505.064. Each newly elected member of the state | 5900 |
highway patrol retirement board and each individual appointed to | 5901 |
fill a vacancy on the board, shall, not later than ninety days | 5902 |
after commencing service as a board member, complete the | 5903 |
orientation program component of the retirement board member | 5904 |
education program established under section 171.50 of the Revised | 5905 |
Code. | 5906 |
Each member of the board who has served a year or longer as a | 5907 |
board member shall, not less than twice each year, attend one or | 5908 |
more programs that are part of the continuing education component | 5909 |
of the retirement board member education program established under | 5910 |
section 171.50 of the Revised Code. | 5911 |
Sec. 5505.065. The attorney general may maintain a civil | 5912 |
action under section 109.98 of the Revised Code against a member | 5913 |
of the state highway patrol retirement board for harm resulting | 5914 |
from a breach of the member's fiduciary duty. | 5915 |
Sec. 5505.066. (A) The state highway patrol retirement board | 5916 |
shall designate a person who is a licensed state retirement system | 5917 |
investment officer to be the chief investment officer for the | 5918 |
state highway patrol retirement system. The board shall notify the | 5919 |
division of securities of the department of commerce in writing of | 5920 |
its designation and of any change in its designation within ten | 5921 |
calendar days of the designation or change. | 5922 |
(B) The chief investment officer shall reasonably supervise | 5923 |
the licensed state retirement system investment officers and other | 5924 |
persons employed by the state highway patrol retirement system | 5925 |
with a view toward preventing violations of Chapter 1707. of the | 5926 |
Revised Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. | 5927 |
and following, the "Securities Act of 1933," 48 Stat. 74, 15 | 5928 |
U.S.C. and following, and the "Securities Exchange Act of 1934," | 5929 |
48 Stat. 881, 15 U.S.C. 78a, and following, and the rules and | 5930 |
regulations promulgated under those statutes. This duty of | 5931 |
reasonable supervision shall include the adoption, implementation, | 5932 |
and enforcement of written policies and procedures reasonably | 5933 |
designed to prevent persons employed by the state highway patrol | 5934 |
retirement system from misusing material, nonpublic information in | 5935 |
violation of those laws, rules, and regulations. | 5936 |
For purposes of this division, no chief investment officer | 5937 |
shall be considered to have failed to satisfy the officer's duty | 5938 |
of reasonable supervision if the officer has done all of the | 5939 |
following: | 5940 |
(1) Adopted and implemented written procedures, and a system | 5941 |
for applying the procedures, that would reasonably be expected to | 5942 |
prevent and detect, insofar as practicable, any violation by its | 5943 |
licensed investment officers and other persons employed by the | 5944 |
state highway patrol retirement system; | 5945 |
(2) Reasonably discharged the duties and obligations | 5946 |
incumbent on the chief investment officer by reason of the | 5947 |
established procedures and the system for applying the procedures | 5948 |
when the officer had no reasonable cause to believe that there was | 5949 |
a failure to comply with the procedures and systems; | 5950 |
(3) Reviewed, at least annually, the adequacy of the policies | 5951 |
and procedures established pursuant to this section and the | 5952 |
effectiveness of their implementation. | 5953 |
(C) The chief investment officer shall ensure that securities | 5954 |
transactions are executed in such a manner that the state highway | 5955 |
patrol retirement system's total costs or proceeds in each | 5956 |
transaction are the most favorable under the circumstances. | 5957 |
For purposes of this division, no chief investment officer | 5958 |
shall be considered to have failed to satisfy the officer's duty | 5959 |
of best execution if the officer has done both of the following: | 5960 |
(1) Adopted and implemented a written policy that outlines | 5961 |
the criteria used to select broker-dealers that execute securities | 5962 |
transactions on behalf of the state highway patrol retirement | 5963 |
system, which criteria shall include all of the following: | 5964 |
(a) Commissions charged by the broker-dealer, both in the | 5965 |
aggregate and on a per share basis; | 5966 |
(b) The execution speed and trade settlement capabilities of | 5967 |
the broker-dealer; | 5968 |
(c) The responsiveness, reliability, and integrity of the | 5969 |
broker-dealer; | 5970 |
(d) The nature and value of research provided by the | 5971 |
broker-dealer; | 5972 |
(e) Any special capabilities of the broker-dealer. | 5973 |
(2) Reviewed, at least annually, the performance of | 5974 |
broker-dealers that execute securities transactions on behalf of | 5975 |
the state highway patrol retirement system. | 5976 |
Sec. 5505.07. (A) The state highway patrol retirement board | 5977 |
may employ a secretary and secure the services of employees for | 5978 |
the transaction of business of the state highway patrol retirement | 5979 |
system. | 5980 |
Effective ninety days after the effective date of this | 5981 |
amendment, the board may not employ a state retirement system | 5982 |
investment officer, as defined in section 1707.01 of the Revised | 5983 |
Code, who does not hold a valid state retirement system investment | 5984 |
officer license issued by the division of securities in the | 5985 |
department of commerce. | 5986 |
The compensation of all persons engaged by the board and all | 5987 |
other expenses of the board necessary for the proper operation of | 5988 |
the pension fund shall be paid at such rates and in such amounts | 5989 |
as the board approves. Every expense voucher of an employee, | 5990 |
officer, or board member of the state highway patrol retirement | 5991 |
system shall itemize all purchases and expenditures. | 5992 |
(B) The clerical procedures required in the operation of the | 5993 |
retirement system shall be performed by the staff of the secretary | 5994 |
appointed by the board. The cost of such clerical procedures and | 5995 |
the services performed by the secretary of the retirement system | 5996 |
shall be paid by the retirement system. | 5997 |
(C) The board shall appoint an actuary who shall be its | 5998 |
technical advisor. | 5999 |
(D) The board shall from time to time adopt such mortality | 6000 |
and other tables of experience, and such rate or rates of | 6001 |
interest, as are required in the proper operation of the | 6002 |
retirement system. | 6003 |
(E) The board shall determine by appropriate rules the | 6004 |
service to be credited any member in any calendar year. | 6005 |
The board shall perform other functions and adopt rules as | 6006 |
required for the proper execution of Chapter 5505. of the Revised | 6007 |
Code. | 6008 |
Sec. 5505.122. If the Ohio retirement study council | 6009 |
establishes a uniform format for any report the state highway | 6010 |
patrol retirement board is required to submit to the council, the | 6011 |
board shall submit the report in that format. | 6012 |
Sec. 5505.99. (A) Whoever violates division (A) of section | 6013 |
5505.045 of the Revised Code shall be fined not more than one | 6014 |
hundred dollars for each day of the violation. | 6015 |
(B) Whoever violates division (B) of section 5505.045 of the | 6016 |
Revised Code shall be imprisoned for not more than six months or | 6017 |
fined not more than five thousand dollars, or both. | 6018 |
(C) Fines imposed by the Ohio elections commission under this | 6019 |
section shall be paid into the Ohio elections commission fund | 6020 |
created under section 3513.10 of the Revised Code. | 6021 |
Section 2. That existing sections 102.02, 102.03, 102.06, | 6022 |
117.10, 145.04, 145.05, 145.051, 145.06, 145.09, 145.27, 171.01, | 6023 |
171.02, 171.03, 171.04, 742.03, 742.04, 742.05, 742.10, 742.38, | 6024 |
742.41, 1707.01, 1707.03, 1707.17, 1707.19, 1707.20, 1707.22, | 6025 |
1707.23, 1707.25, 1707.261, 1707.39, 1707.431, 1707.44, 1707.46, | 6026 |
3307.03, 3307.05, 3307.06, 3309.061, 3307.07, 3307.11, 3307.20, | 6027 |
3309.03, 3309.05, 3309.06, 3309.07, 3309.14, 3309.22, 5505.04, and | 6028 |
5505.07 of the Revised Code are hereby repealed. | 6029 |
Section 3. Section 1707.162 of the Revised Code, as enacted | 6030 |
by this act, shall take effect ninety days after the effective | 6031 |
date of this section. | 6032 |
Section 4. The amendment to sections 3307.05, 3307.06, and | 6033 |
3307.07 of the Revised Code in this act shall not affect the term | 6034 |
of any elected member of the State Teachers Retirement Board | 6035 |
serving on the effective date of this section. The term of the | 6036 |
additional retired teacher member position as created by this act, | 6037 |
shall commence September 1, 2004. | 6038 |
Section 5. The Ohio Ethics Commission has authority to | 6039 |
investigate allegations of violations of Chapter 102. of the | 6040 |
Revised Code or section 2921.42 or 2921.43 of the Revised Code by | 6041 |
members or employees of the state retirement boards. This express | 6042 |
statement of authority is an affirmance of the commission's | 6043 |
authority to conduct these investigations. It does not imply and | 6044 |
shall not be construed to mean that the Ohio Ethics Commission did | 6045 |
not have authority to investigate violations of this nature prior | 6046 |
to the enactment of this act. | 6047 |
Section 6. Section 742.41 of the Revised Code is presented | 6048 |
in this act as a composite of the section as amended by both Sub. | 6049 |
H.B. 535 and Am. Sub. S.B. 180 of the 123rd General Assembly. | 6050 |
Section 3307.20 of the Revised Code is presented in this act as a | 6051 |
composite of the section as amended by both Sub. H.B. 535 and Am. | 6052 |
Sub. S.B. 180 of the 123rd General Assembly. Section 3309.22 of | 6053 |
the Revised Code is presented in this act as a composite of the | 6054 |
section as amended by Sub. H.B. 535, Sub. S.B. 270, and Am. Sub. | 6055 |
S.B. 180 all of the 123rd General Assembly. Section 5505.04 of the | 6056 |
Revised Code is presented in this act as a composite of the | 6057 |
section as amended by both Sub. H.B. 535 and Am. Sub. S.B. 180 of | 6058 |
the 123rd General Assembly. The General Assembly, applying the | 6059 |
principle stated in division (B) of section 1.52 of the Revised | 6060 |
Code that amendments are to be harmonized if reasonably capable of | 6061 |
simultaneous operation, finds that the composites are the | 6062 |
resulting versions of the sections in effect prior to the | 6063 |
effective dates of the sections as presented in this act. | 6064 |